Trailing Stop Loss Order Levels Crude Technical Analysis & Trailing Stop-Loss Order Levels Trading Signals

Developed by Tushar Chandes.

This is a volatility based indicator that's used to estimate levels to set stoploss levels. Distance at which it estimates the trailing stop level is determined based on market volatility.

The Levels of the two lines, these 2 lines represent:

• Long Stop Level - Blue Line
• Short Stop Level - Red Line

Long stop level line has much wider range in terms of where it trails the stop loss as compared to short stop level that implements a tight stop loss.

This indicator is volatility based when it comes to trailing and following the crude price action. Trailing Stop Levels will trail the above the crude trading price in downwards market trend and trails below the crude trading price in an upwards market trend.

Technical Analysis & Generating Trading Signals

These will be calculated using volatility to calculate where to draw the indicator - this is used to determine what levels to set stop losses.

Upwards Trend

In an upwards trend these levels will follow below the crude trading price. The trader can use either the short stop level line to set up a tight stop or the long stop level to set a stop loss that is not very tight. As the crude trading price goes higher the trailing level also goes higher. An exit signal is generated when crude trading price crosses below these levels.

Oil Uptrend

Downwards Trend

In a downwards trend the stop loss levels will trail above the crude trading price this two levels can be used to set these levels. As the crude trading price drops further these levels will continue to drop lower and follow the crude trading price lower. An exit signal is generated when crude trading price crosses above these levels.

Trade Downtrend

When crude price starts to retrace these levels will not retrace but will remain at their levels, this will mean at some point the trade will be closed by the trailing stop loss.