Trailing StopLoss Order Levels Analysis & Trailing StopLoss Order Levels Trading Signals
Developed by Tushar Chande.
This is a volatility based trading indicator that's used to gauge/estimate levels to set stop loss order levels. Distance at which it estimates the trailing stop level is determined by the price volatility.
Levels of the two lines, these two lines represent:
- Long Stop Level - Blue Line
- Short Stop Level - Red Line
The long stop level line has much wider range in terms of where it trails the stop loss as compared & analyzed to short stop level which implements a tight stop loss order.
This indicator is volatility based when it comes to trailing and following the price action. Trailing Stop Levels will trail the above the price in downwards market trend and trails below the price in an upward market trend.
Analysis & Generating Signals
These will be calculated using the volatility to calculate where to draw the technical indicator - this is used to figure out what levels to set stop loss orders.
Upward Trend
In an upwards trend these levels will follow below the price. Short stop level line can be used to set a tight stop loss vs Long stop level line which can be used to set a stop loss level which isn't very tight. As the price moves and goes higher the trailing level also moves and goes higher. An exit signal is generated when price crosses below these technical levels.
Gold Uptrend
Downward Trend
In a downward trend the stoploss order levels will trail above the price these two levels can be used to set these stop loss order levels. As the price drops further these levels will continue to drop lower & follow the price lower. An exit signal is generated when the price crosses above these technical levels.
Gold Downtrend
When price begins to retrace these technical levels will not retrace but will remain at their levels, this will mean at some point the trade will be stopped out by the trailing stop loss order.
More Topics & Courses:
- Where Can You Get a Guide?
- Example of a Price XAU USD Trend in a Chart
- How Do I Trade with Fibonacci Pullback Levels XAUUSD?
- How Can I Trade a New Gold Order on Gold MT4 Android App?
- How Do I Gold Set Buy Stop XAU/USD Order on MT5 Platform?
- Customizing Gold Line Studies Toolbar Menu in MT4 Software Platform
