Stock Technical Stock Trading Indicators For Setting Stop losses In Stock Trading
Some Stock trading indicators are used for setting stop losses taking away the need for stock traders to perform complex calculations on where to place these stop loss stock trading orders.
A Stock trading systems trader can also place a stop loss stock trading order according to these stock trading technical indicators. Some stock trading technical indicators use mathematical equations to calculate where the order stop loss stock trading order should be set so as to provide an optimal exit. These stock trading indicators can be used as the basis for setting stop loss stock trading orders. These stock trading indicators follow stock price action of a stock trading instrument closely and define the boundaries which the stock trading prices should move along in. When the stock trading price moves outside these boundaries it is therefore best to close the open stock trading trades because stock price stops moving in that particular direction.
Some of the Technical stock trading indicators that can be used to set stop loss stock trading orders are:
Parabolic SAR Stock Trading Indicator - Automatic Stop Loss And Take Profit Indicator
Parabolic SAR is like an Automatic Stop Loss And Take Profit Indicator used to set a trailing stock price stop loss
The Parabolic SAR provides excellent exit points.
In an upward stock trading trend, you should close long positions when the stock price falls below the Parabolic SAR stock trading indicator
In a downward stock trading trend, you should close short positions when the stock trading price rises above the Parabolic SAR.
If you are long then the stock price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the stock trading price is moving. The amount the Parabolic SAR indicator moves up depends on the amount that stock trading prices moves.
Parabolic SAR - Stock Trading Indicator - Automatic Stop Loss And Take Profit Indicator
Picture of parabolic SAR and how it is used
Bollinger Bands Stock Trading Indicator - Stock Trading Indicator for Setting Stop Loss Stock Trading Orders
Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands stock trading indicator consist of 3 bands designed to encompass the majority of a stock trading instruments stock price action. The middle band is a basis for the intermediate term stock trading trend, typically it is a 20-period simple moving average, which also serves as the base for the upper and lower bands. The upper band's and lower band's distance from the middle band is determined by volatility.
Since these Bollinger bands are used to encompass the stock trading instrument stock price action, the bands can be used to set stop losses just outside the area of the bands.
Bollinger Bands Setting Stop Loss Level - Bollinger Bands Stock Technical indicator
Fibonacci Retracement Levels Indicator - Automatic Stop Loss And Take Profit Indicator
Fibonacci retracement levels provide areas of support and resistance, these areas can be used to set stop loss levels.
Fibonacci Retracement level 61.8 % is the most commonly used level for setting stop losses. A stop loss stock trading order should be set just below 61.8 % Fibonacci retracement level
The 61.8 % Fibonacci retracement level is used to set this orders since its rarely hit.
Fibonacci Indicator Stop Loss Setting at 61.8 % Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Stock Trading Indicator
Support and Resistance Levels Lines
Support and resistance levels can be used to set stop loss levels where the stop loss stock trading orders are set just above or below the support or resistance.
- Buy Stock Trade - Stop Loss order set a few pips below the support
Buy Stock Trade - Stop Loss set a few pips below the support
- Sell Stock Trade - Stop Loss order set a few pips above the resistance
Sell Stock Trade - Stop Loss set a few pips above the resistance