Trade Forex Trading

Learn Forex Trading

Technical Indicators For Setting Stop losses In Forex Trading

Some Forex trading indicators are used for setting stop losses taking away the need for traders to perform complex calculations on where to place these orders.

 

A Forex trading systems trader can also place a stop loss order according to these indicators. Some indicators use mathematical equations to calculate where the order should be set so as to provide an optimal exit. These indicators can be used as the basis for setting stop loss orders. These indicators follow price action of a currency closely and define the boundaries which the currencies should move along in. When the currency moves outside these boundaries it is therefore best to close the open trades as price stops moving in that particular direction.

 

Some of the Technical indicators that can be used to set stop loss orders are:

 

Parabolic SAR Indicator

Parabolic SAR is used to set a trailing price stop loss

 

The Parabolic SAR provides excellent exit points.

 

In an uptrend, you should close long positions when the price falls below the parabolic SAR

 

In a downtrend, you should close short positions when the price rises above the parabolic SAR.

 

If you are long then the price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the price is moving. The amount the parabolic SAR moves up depends on the amount that prices moves.

Parabolic SAR Setting Stoploss Forex Indicator

Parabolic SAR - Forex Indicator

Picture of parabolic SAR and how it is used

 

Bollinger Bands Indicator

Bollinger bands use standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.

 

Bollinger Bands consist of 3 bands designed to encompass the majority of a trading instruments price action. The middle band is a basis for the intermediate-term 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 bands are used to encompass the trading instrument price action, the bands can be used to set stop losses just outside the area of the bands.

Bollinger Bands Stop Loss Setting Forex Indicator

Bollinger Bands Setting Stop Loss Level

 

Regulated Forex Broker

Takes 4 to 6 weeks to open an account, open early: Read The Article "Account Opening Procedure"

Choose the Best Forex Broker: Read The Article "Best Forex Broker"

Up To $6.67 Dollars Bonus for Every Lot Traded Get Up To $6.67 For Every Lot Traded

 

Fibonacci Retracement Levels 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. An order   should be set just below 61.8 % Fibonacci retracement level

 

The 61.8 % retracement level is used to set this orders since its rarely hit.

Fibonacci Indicator Stop Loss Setting at 61.8 % Retracement Level

Fibonacci Indicator Stop Loss Setting at 61.8 % Retracement Level

Fibonacci retracement level 61.8%

 

 

Support and Resistance Levels Lines

Support and resistance levels can be used to set stop loss levels where the orders are set jus above or below the support or resistance.

 

  • Buy Trade - Stop Loss set a few pips below the support

Buy Forex Trade - Stop Loss Set a Few Pips Below The Support

Buy Trade - Stop Loss set a few pips below the support

 

 

  • Sell Trade - Stop Loss set a few pips above the resistance

Sell Trade - Stop Loss Set a Few Pips Above The Resistance

Sell Trade - Stop Loss set a few pips above the resistance

Up To $6.67 Dollars Bonus for Every Lot Traded Get Up To $6.67 For Every Lot Traded

Market Outlook: Very Bullish for EURUSD, and EURJPY - Also for GBPUSD, GBPJPY, and AUDUSD (No Need For Technical Analysis - This is Risk Appetite -Risk Averse Speculation).

Do Not Be Left by This Opportunity: Open an account and start buying Euros and position yourself early - Risk appetite speculation has already started. - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Buy the retracements and use 1 Hour and M15 Charts to look for best entry and exit points - Also checkout Money Management Rules.

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

Malaysia Forex Seminar

Hungary Forex Seminar

Greece Forex Seminar

XM Account Holders Hungary Seminar

XM Account Holders Thailand Seminar

European Forex Broker XM is Licensed and Regulated in 12 Countries; 10 European Countries, Australia and UK

XM Forex Broker Regulation Licenses

Should you open an XM Account this is exactly how it looks like:

Forex Account Secure Clients' Area - Trader Cabinet

Up To $6.67 Dollars Bonus for Every Lot Traded

Loyalty Bonus Points - Up To $6.67 Dollars Bonus For Every Lot Traded

Bonus Points

Forex Trading Accounts Members Area - Withdraw and Deposit Options

Real Forex Trading Account Withdraw and Deposit Options

XMP Forex Loyalty Bonus Program

Silver and Gold Online Trading

CFDs Trading and Forex Trading

50% and 20% Bonus

$5,000 Forex Bonus

Bonus Points

Forex Account Types

Micro Account - To open Micro Forex account, $100 minimum balance, 1.7 pips spread on majors, Leverage 1:500

For this account you can trade Micro lots as well as Nano lots and Pico lots. Traders looking for micro Forex brokers or micro lot Forex brokers can open this account.

Mini Account - To open Mini Forex account, $1,000 minimum balance, 1.7 pips spread on majors, Leverage 1:200. Traders looking for mini Forex brokers or mini lot Forex brokers can open this account

Standard Account - To open Standard Forex account, $10,000 minimum balance, 1.7 pips spread on majors, Leverage 1:100

As a note, you can also trade mini lots on the standard account, just select 0.1 Lots instead of the full lot - 1 lot.

Executive Account - To open Executive Forex account, $100,000 minimum balance, 1.7 pips spread on majors, Leverage 1:100

As a note, you can also trade mini lots on the executive account, just select 0.1 Lots instead of the full lot - 1 lot.

XM Zero Account - This account provides spreads as low as 0.1 for traders looking for a low spread Forex broker. (For this account there is an additional commission of $10 per lot on top of the spreads). This account is suited for high frequency traders such as scalpers and EA traders looking to save on the spreads. This is the account for high frequency EA automated trading strategies and traders who look for less than 1 pip forex broker. However, note there is the additional $10 fee commission per lot.


Islamic Forex Accounts

Islamic accounts are swap free, meaning there is no paying/receiving of interest. This account is suited for traders looking for Islamic Forex brokers.

Deposit/Withdraw Funds

Clients have a secure members area on their website once they have opened an account, in this client area or cabinet you can deposit/withdraw your money at any time. By clicking my account and then clicking deposit button then fill the details, for withdraw just click my account and then the withdraw button. Withdraw Requests are also processed on the same business day and receipt of funds is issued within the same day making XM the most reliable Forex broker online.

Regulated Broker