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Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Two separate things. Start with the walkthrough to learn the screen you trade on; the topics explain the trading behind it.
Candle Arena needs the height to show a chart and your trade at the same time. Landscape on a phone is not supported yet.
Each candle covers 5 minutes. For two hours, price has swung up and down between 30.00 and 31.00. The candles overlap and their colours keep flipping.
A trend needs highs and lows that both climb, or both fall. Here the tops wander around 31.00 and the bottoms around 30.00. No direction.
Highs 31.00 · 31.10 · 30.98 Lows 30.00 · 29.95
Price poked up to 31.10, then closed at 30.80. It dipped to 29.95, then closed at 30.25. The edges leak, so a stop there gets clipped.
The stop goes just under where the idea is wrong: below the pokes, at 29.90. The target goes just under the ceiling, at 30.90.
Buy 30.50 · Stop 29.90 · Target 30.90
1R is what the stop would cost. The best case here is 0.40 for 0.60 risked: 0.67R. Over many trades, you need 6 wins in 10 to break even.
Risk 0.60 · Reward 0.40 · 0.67 to 1
Move the stop up to 30.20 and the risk drops to 0.30. But the very next candle dips to 30.10. The stop is hit before anything happens.
Stop 30.20 · next low 30.10
Watching for two hours is not a reason to trade. A trade needs a reason, a stop, and room to a target. Waiting costs nothing. A losing trade costs 1R.
Not trading: 0R · Stopped out: -1R
Later, a buy at 30.50 did reach 30.90. Judge a decision by its reasons, not one result. Standing aside works the same on 1-minute, daily or monthly charts.
You have watched this chart for two hours. Price is at 30.50, halfway between 30.00 and 31.00. What is the best plan?