Indicators for Setting Stop losses in XAUUSD

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

A systems trader can also set a stop loss order according to these indicators. Some technical indicators use mathematical equations to calculate where the order stop loss 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 instrument closely and define the boundaries which the prices should move along in. When the price moves outside these boundaries it is therefore best to close the open trades because 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 like an Automatic Stop Loss Order & TakeProfit Order Indicator used to set a trailing price stop loss

Parabolic SAR provides excellent exit points.

In an upwards trend, you should close long trades when the price falls below the Parabolic SAR technical indicator

In a downward trend, you should close short trades 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 indicator moves up depends on amount that prices moves.

List of Indicators for Settings Stop Loss Order and Where to Set Stops on Charts

Parabolic SAR - Indicator - Automatic Stop Loss Order & TakeProfit Order Indicator

Picture of parabolic SAR & how it is used

Bollinger Bands Indicator

Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation indicator 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 indicator consist of 3 bands designed to encompass the majority of a price action. The middle band is a basis for the intermediate term trend, typically it's a 20 period simple moving average, which also serves as a base for the upper band as well as the lower band. Upper band's distance & lower band's distance from the middle-band is usually determined by volatility.

Since these Bollinger bands are used to encompass the price action, the bollinger bands can be used by traders to set stop loss orders just outside the areas of the bands.

How to Analyze Where to Place a Stop Loss Order

Bollinger Bands Setting Stop Loss Order Level - Bollinger Bands Technical indicator

Fibonacci Retracement Levels Indicator

Fibonacci retracement levels provide areas of support and resistance, these can be used to set stop loss levels.

Fib Retracement level 61.80% is the most commonly used level for setting stoplosses. A stoploss order should be set just below 61.8% fib retracement level

The 61.80% Fibo retracement level technical indicator is used to set these orders because its rarely hit.

List of Technical Indicators for Setting Stop Loss and Where to Set Stops on Charts