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Sambear

Why does price usually retrace a bit to the stop loss point and then move in the direction of the trades?

Why the buyers and sellers do this?

7 months ago

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Boripat

It really depends on where you put your stop loss in a certain situation, some times price retraces when people take profit from their position before resuming its move.

If your stop loss is activated by a price retracement after some period of price movement then I suggest you reconsider your strategy and readjust your stop so that in the future you wont be taken out of prematurely.

7 months ago

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Cyclopip

This may be a result of your trading style. You may be placing too tight a stop loss, or as Boripat said, you may be leaving your trade open too long that it invalidates your trade. One thing you can try is to widen your stop loss a little bit and trade smaller positions. This could help give you trades more breathing room so you won't get stopped out only to see price eventually go your way. One tool I suggest you use is the Fibonacci retracement tool. I've provided a link below on how to use this tool - it may be very useful for you in determining when to enter and exit a trade. Good luck in the future!

7 months ago

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ForexGump

Also, be sure to place your stop loss above a significant resistance level for short trades and below a significant support mark for long trades.

7 months ago

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