Stop Signs and End of Trails

This post continues on how to set trail stops and when to sell. The aim of which is to avoid loss.

Rayner Teo, a Singaporean independent trader, shares on 5 stop loss techniques

• moving average: exit your position when price closes below 20 SMA
• martket structure: exit when swing low is hit
• percentage: exit with 10% change in  high is hit
• average true range: 5 ATR from the lows; slash chandelier stop
• Previous candle: trail based on the previous candle high or low

MoneyGrowers shares how to set stop loss; it is based on trade objective: momentum or bounce

• for momentum play, place stop loss at confluence of support (read below)
• bearish engulfing candle signals potential sell; the opposite bullish engulfing candle signals potential buy 
• if prices glide in 20 MA, momentum might build up

RKay shares places to place an stop loss

• recent swing high
• recent swing low

ZF shares

• During parabolic runs, hold until candle goes below the previous days's closing price
• Buy on Breakout and Set Trailing Stops
• 3rd day red candle with gap (abadoned baby sign)
• FastK at buy levels with RSI at 53 *on sample chart analysis
• It is also common to set trail stop at previous green candle or moving average or retracement

RKay shares about confluence Confluence Trading Price Action Techniques

• Confluence:  two or more levels  come together at a certain point on your chart 
• It can be a a trendline coming together at at 61.8% or 50% fibonacci level
• it can be a support level meeting a rising trendline
• it can be a Fibonacci level meeting a support level where price meet

RKay shares further that there are 4 areas or levels confluence trading can happen

1. support levels
2. resistance levels
3. fibonacci levels
4. trendlines