Where Should You place a Stop Loss CFD Order using Support Level and Resistance Levels in CFD?

A trader can use support and resistance levels on the cfds chart to determine where to place their stop loss orders using the techniques described on the example below:

Setting Stop Loss CFD Order using Resistance Levels

One way of setting stop loss orders is to use resistance levels, on the cfds charts.

Given that stop loss orders tend to congregate at key points, when one of these resistance levels is touched by the cfd price, other orders are set off.

Stop Loss orders tend to accumulate just above the resistance zones.

A resistance area should act like a barrier for cfd price movement, this is why the resistance zone are used to set stop loss orders.

If this resistance level is broken the cfd price movement can go toward the opposite direction of the original cfd trend, but if this resistance level is not broken the cfd price will continue moving in the intended direction.

Stop Loss CFD Order Level Setting using Resistance Zones in CFDs

Setting Stop Loss CFD Order above the Resistance Level

Setting Stop Loss CFD Order using Support Levels

Another way of setting stoploss orders is to use support levels, on the cfds charts.

Given that stop loss orders tend to congregate at key points, when one of these support levels is touched by the cfd price, other orders are set off.

Stop-loss orders tend to accumulate just below the support zones.

A support zone should act like a barrier for cfd price movement, this is why these support levels are used to set stop-losses.

If this support level is broken the cfd price movement can go toward the opposite direction of the original cfd trend, but if this support level is not broken the cfd price will continue moving in the intended direction.

Stop Loss CFD Order Level Setting using Support Zones in CFD

Setting Stop Loss CFD Order below the Support Level