Trader Dale Volume Profile
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Finding your style<br />
Stop-loss and Profit Target for intraday trades<br />
I suggest you adapt your SL and PT pip values to the volatility of the instrument you are trading.<br />
An easy way to determine this is to use ATR (Average True Range) indicator and set it for a long<br />
period, for example, 200. Then load around 300-500 days (daily timeframe) in your charts and see<br />
what the average ATR<br />
value for this period was (=<br />
what the average daily<br />
volatility in this period<br />
was). Then you need to<br />
multiply the ATR number<br />
by 10.000 to get the value<br />
in pips.<br />
For intraday trades, I<br />
suggest you use your SL<br />
and PT values around 10-<br />
20% of the average daily<br />
ATR.<br />
In the example below, there are 500 daily candles on the EUR/USD along with ATR indicator set<br />
to 200 period. The approximate ATR value is somewhere around 0.0085. Multiply this number by<br />
10.000 to get the average daily volatility on the EUR/USD in pips. In this case, the result is 85 pips.<br />
Based on this example, your intraday SL and PT values should be somewhere in the 8.5 – 17 pip<br />
area.<br />
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