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

A trader can use support & resistance levels on the commodities chart to determine where to place their stop loss commodity orders using the techniques explained on the example below:

Determining Where You Should set a StopLoss Commodity Trading Order using Resistance Levels in Commodities

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

Given that stop loss commodity orders tend to congregate at key points, when one of these resistance levels is touched by the commodities 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 commodities price movement, this is why the resistance zone are used to set stoploss orders.

If this resistance level is broken the commodities price movement can go towards the opposite direction of the original commodity trend, but if this resistance level is not broken the commodities price will continue heading in intended direction.

Stop Loss Commodity Trading Order Level Setting using Resistance Zones in Commodities

Setting Stop Loss Commodities Trading Order above the Resistance Level

Determining Where You Should set a StopLoss Commodity Trading Order using Support Levels in Commodities

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

Given that stop loss commodity orders tend to congregate at key points, when one of these support levels is touched by the commodities 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 commodities price movement, this is why these support areas are used to set stoplosses.

If this support level is broken the commodities price movement can go towards the opposite direction of the original commodity trend, but if this support level is not broken the commodities price will continue heading in intended direction.

Stop Loss Commodity Trading Order Level Setting using Support Levels in Commodities

Setting Stop Loss Commodities Trading Order below the Support Level