munchiedude
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No mate, that is actually the whole point. If the market can see where your stop is, it doesn't matter where your entry was - expect to get some pain. If you put your stop right next to a neon flashing light that says "here is my stop" , as it would be behind a swing low/high, then you have to expect it to be taken out.
The HH/HL thing is great in forums, and in books, but pretty unreliable to trade. Unless the sh!t is hitting the fan, you should try fading into these HH's / HL's (and reverse), because that's where all the stops are likely to be.
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hi FQ,
thanks for a little insight into the cons of the stop and replace. i completely agree that this technique would make it sceamingly obvious where my stop is and its def not good. what i do tend to do is place the stop a few pips below the sup lvl if going long of the last swing high as to avoid being stopped out due to fluctuations.
i would say the point of this moving stop is to trail and lock in profit whilst allowing room for the trade to potentially develop further and as such it does not matter if i get stopped out as that is the point of this and ideally would be stopped out with a profit.
bearing in mind that im a noob, i will give the fading idea a go at a later stage, still trying to build the fundamental blocks atm