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How do you account for the spread when S/R lines are broken
I'm sure this question has been asked before; however, I searched the forum and couldn't find a thread dedicated to the topic. It may be embedded in some of the daily journal threads, but there are so many pages in those to accurately find the question.
GBP/JPY typically has a 7 point spread. Usually, the Bid line is shown and the price quoted. So in a long S/R situation, do you Buy when the bid crosses the S/R, or when the Ask crosses the S/R? Thats a 7 pip difference and could result on entry of some fake outs.
OK...If I assume its when the Bid crosses the S/R, that mean (hypothetically, lets take the 207.00 S/R), If I buy when the bid crosses, I enter and the Ask is 207.07. Do I set my First Half exit at 207.7, so then my first half really makes 63 pips? Or do I enter long when the Ask crosses the line.
I understand the trade has intuition, and there is no set rule as price action rules...but just curious how the spreads are accounted for...particulary on a cross currency pair that has a higher spread compared to the big 6.
FYI...working on writing my introduction, and trading plan to start a trade journal. ONe of the keys to success is to put on paper your goals instead of mentally thinking about them. Also, the more public you make them, the better you are in terms of personal accountability. I hope to promote what will be an entertaining exercise as I plan to attempt to highlight 2 different trading methods to understand my personality.
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