breakouts limit orders

[ampris2000]

if you are waiting for a breakout how many pips away the support/resistance area should the limit order be placed?

the reason i'm asking is because I can see where a breakout may occur but sometimes i have placed my limit order too close.

as a result it is triggered by a small movement price moves in the opposite direction.

thanks.

[SoundFX]

Ampris

I'd say that depends greatly on what time frame you're using the width of the range which you're breaking out as well as which p you're trading. For instance a GBP/JPY would require more breathing room the the USD/CAD.

Typically on 5M chart breakouts for GBP/USD I like a stop 11 pips away either end of the range less in the EUR/USD etc.

-SFX

[liquidrock]

limit orders are a great way to trade forex. use support resistance levels to determine where your limit order should be. resistance for short support for long orders.

the stop loss should also be based on support reistance levels as i feel they are should be dynamic in my opinion. some people use a set stop loss using a set value.. i.e. 35 pips they do well. hope this helps.

[outofdebt]

I have the opposite problem : I place limit order too far away. I take the most extreme cle on 1 hour chart of s/r zone enter 15 pips beyond that.

If it happens to be near another support/resistance (ie. trendlines 100 ma or 200 ma fibs or round numbers etc... )I'll stay out until price has stronger breakout.

Also if it doesn't stay past s/r for 15 min. I get out re-enter later if there still is a clear direction.
However I get in too late a lot miss most of the moves