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How long to stay in a trade that's not moving
This happens to me on an infrequent, but regular basis. MTR setup looks good. Happy with the entry, stop and profit target. Then it just sits for bar after bar, with minor movement up or down. After what period of time, or number of bars, should I conclude my premise isn't working and get out of the trade with a small profit or loss? I want to be out of the trade before the session ends, but that's still three hours away.
It's hard to see in the image below, but I entered at 13:25, in the upper right of the image.
Thanks for your thoughts and comments!
After that second entry short failed (just right of your dotted trendline) and going into a tight trading range is enough to give up on MTR premise. So about 3-4 bars max before giving up.
I wouldn't have drawn the trendline so far to right, and much steeper from the low. So for me the MTR setup was earlier but it still suffered a failed second entry short and went into a small pullback bull channel before going sideways. Trading range behaviour.
By the time you entered, the market was in a minor reversal/trading range, so would not be looking for a double top (still arguably an MTR but the bull trend test had long since expired).
PS. What was trouble with chart? Why so small? I am changing forum software very soon and hope it works better for embedded charts.
Trading range behaviour.
Thanks for your analysis.
I looked at the setup a bit differently than you. I thought I had a double top and was getting a nice second entry with some momentum. Nevertheless I see your points, particularly with respect to getting out in a tight trading range.
I ended up waiting quite a while longer. Don't remember if it was a profit or loss, but either way it was small. My mind told me to get out and move on, but I kept hoping, which is not a good trading approach.
I'm not sure why I had such trouble with the chart. Oanda is the platform. I took a screenshot in Oanda. I couldn't figure out how to overlay arrows, etc. Likely the issue is my limited technical knowledge in this area, not the forum software.