Trailing Stop Loss Commodity Trading Order Levels Commodities Trading Technical Analysis and Trailing Stop Loss Commodities Trading Order Levels Trading Signals

Created by Tushar Chande.

This is a volatility based technical indicator that is used to estimate levels to set stop-loss levels. The distance at which it estimates the trailing stop level is determined based on market volatility.

The Levels of the 2 lines, these 2 lines represent:

• Long Stop Level - Blue Line
• Short Stop Level - Red Line

The long stop level line has much wider range in terms of where it trails stop loss as compared to short stop level which implements a tight stop loss.

This commodity technical indicator is volatility based when it comes to trailing and following the commodity price action. Trailing Stop Levels will trail the above the commodity price in a downward market commodity trend and trails below the commodity price in an upward market trend.

Commodities Trading Analysis & Generating Trading Signals

These will be calculated using volatility to calculate where to draw the indicator - this is used to figure out what levels to set stop losses.

Upwards Commodities Trading Trend

In an upwards commodity trend these levels will follow below the commodity price. The trader can use either the short stop level line to set up a tight stop or the long stop level to set a stop loss that is not very tight. As the commodity price goes higher the trailing level also goes higher. An exit signal is generated when price crosses below these levels.

Commodity Trading Uptrend

Downward Commodity Trading Trend

In a downward commodity trend the stop loss levels will trail above the commodity price this two levels can be used to set these levels. As the commodity price drops further these levels will continue to drop lower and follow the commodity price lower. An exit signal is generated when price crosses above these levels.

Commodity Trading Downtrend

When commodity price starts to retrace these levels will not retrace but will remain at their levels, this will mean at some point the trade will be closed by the trailing stop loss.