GJ: H1, H4 and Daily Chart

I skip GJ signal today because I think that the risk is to big (green yellow line). The pair touch 30 EMA after breaking the red channel. As you see, the pair tested the resistance again after it touched the 30 EMA. Either on hourly, 4 hour or daily chart, the pair may keep on bullish. However, fundamental factor should be consider since it is NFP week. I also added 50% retracement level (yellow Fibo) on H4 chart. On daily chart, it closed above 30 EMA and the initial resistance should be around the green yellow line shown on daily chart.

H1 Chart

H4 Chart

Daily Chart

The channels (red and lime) are broken on H1 chart. 142 is the the target and 148.xx is the next. I kind of regret that I chose not to enter :( Well.. another day maybe ;) Ciao!!

Position Sizing for Breakout System

Click here to see the breakout system.

Now, the Stop Loss is simply the opposite signal. So if the long order triggered, then the Stop Loss would be the short order price, which would triggered the short order.
Everyday we'll have different range of Stop Loss. So if you want to limit your risk per trade, you will have to calculate the quantity.
After you know the high and low, and you adjust it with the spread, you can find the range,which is the Stop Loss.

Here is the example from yesterday on GBP/JPY:

Range : H - L = 72 pips
Equity : $100
Risk : 5% = $5
So, the quantity for a position with 5% risk on a 72 pips Stop Loss will be
($5/72) * Quantity Contract Size. Let say it's a mini account so it will be:
($5/72) * 10000 = 694.44 Quantity which is 0.06 Lot.

Actually it is not just for a breakout system, as long you know your stop loss. And this has nothing to do with risk-reward ratio, it is only to limit the risk. Okay hope this information is useful.. :)