Trader Dale Volume Profile
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Finding your style<br />
Stop-loss and Profit Target for swing trades<br />
As far as swing trading is concerned, I prefer to determine my SL and PT values based on price<br />
action and volumes rather than ATR number as in intraday trading. Still, you should try to stick at<br />
least a bit to some range based on the ATR. Very roughly the range could be somewhere around<br />
50 to 400 % of average daily ATR value. This means 0.5 - 4 times average daily volatility. I know<br />
this is a very rough number, but it gives you at least some idea where your SL and PT should be.<br />
The reason why this is such a rough number is that SL and PT for swing trades hugely depends on<br />
the situation. Sometimes it is okay to use 50 pip SL on the EUR/USD swing trade, but when there<br />
is really wide S/R volume-based zone, then you need to place your SL above/below the zone,<br />
which could easily be for example 300 pips.<br />
Below, is an example of a swing trade I made yesterday on the EUR/USD. I made the analysis on<br />
a Daily chart. The entry level was based on the <strong>Volume</strong> Setup #2: Trend setup in combination<br />
with the Support becomes a resistance (and vice versa) Price Action setup.<br />
In this case, my SL was pretty tight (below the volume cluster in the blue circle). This is because I<br />
place my SL in areas with low volumes.<br />
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