I consider the momentum! I could close the
whole trade at 52 or sell out by selling 5@50,
5@52 and 5@54 to lock in the same profit.
Similarly, for the stop-loss I could sell 5@30,
5@28 and 5@26 which would be the same
loss.
Trading should always be flexible rather than
rigid as aiming for the perfect price every
trade can reduce your profitability. I aim to
maximise my profit in every trade and is all
about taking only high probability trades,
quality not quantity. Creating a trading plan,
which is a set of rules that you follow every
day. Helps to keep you safe by not risking too
much in a trade or day and helps to produce
consistency!
Candlestick v Heikin Ashi
Most traders like to use candlestick charts for
their analysis. I recommend to traders using
Chart courtesy of CQG
NOTE: Heikin Ashi should not be used for back testing.
candlesticks to include Heikin Ashi in their
analysis too. More so for exiting positions as
the structure of the candles provides more
insight into when the immediate trend has
ended. Heikin Ashi has a smoothing effect as
each new candle starts at the midpoint of the
previous candles open/close making the
colouring of the candles more consistent and
flowing, thereby making it easier to identify a
change in sentiment (as demonstrated in the
comparison below). The candlestick chart (at
the top) has a blend of red and green candles
during trends whereas the Heikin Ashi (below
the candlestick) shows more consistent
colouring allowing the trader to have the
confidence to stay in the trade longer.
Due to the fact Heikin Ashi always takes that
midpoint of the previous candle it will not
provide any gaps as seen when comparing the
two charts around mid-September.