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
ZF shares- 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
- recent swing high
- recent swing low
- 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
- support levels
- resistance levels
- fibonacci levels
- trendlines
