Where Should I place a Stop-Loss CFD Order using Support and Resistance Zones?

A trader can use support and resistance levels on the cfds chart to determine where to place their stop loss cfd orders using the methods described on the examples below:

Determining Where You Should set a StopLoss CFDs Order using Resistance Levels in CFDs

One way of setting stop loss cfd orders is to use resistance levels, on the cfds charts.

Given that stop loss cfd orders tend to congregate at key points, when one of these resistance levels is touched by the cfds price, other orders are set off.

Stop-loss orders tend to accumulate just above the resistance zones.

A resistance level should act like a barrier for cfds price movement, this is why the resistance zone are used to set stoploss orders.

If this resistance level is broken the cfds price movement can go toward the opposite direction of the original cfd trend, but if this resistance level is not broken the cfds price will continue moving in intended direction.

Stop Loss CFDs Order Level Setting using Resistance Zones in CFDs

Setting Stop Loss CFD Order above the Resistance Level

Determining Where You Should set a StopLoss CFDs Order using Support Levels in CFDs

Another way of setting stop loss cfd orders is to use support levels, on the cfds charts.

Given that stop loss cfd orders tend to congregate at key points, when one of these support levels is touched by the cfds price, other orders are set off.

Stoploss orders tend to accumulate just below the support levels.

A support level should act like a barrier for cfds price movement, this is why these support areas are used to set stoplosses.

If this support level is broken the cfds price movement can go toward the opposite direction of the original cfd trend, but if this support level is not broken the cfds price will continue moving in intended direction.

Stop Loss CFD Order Level Setting using Support Levels in CFD

Setting Stop Loss CFD Order below the Support Level