Trailing Stop Loss Order Levels Technical Analysis & Trailing Stop Loss Order Levels Signals

Developed by Tushar Chandes.

This is a volatility based indicator that's used to estimate levels to set stop loss levels. 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 indicator is volatility based when it comes to trailing and following the price action. Trailing Stop Levels will trail the above the price in downwards market trend and trails below the price in an upwards market trend.

XAUUSD Analysis and How to Generate Signals

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

Upward Trend

In an upwards trend these levels will follow below the trading 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 price goes higher the trailing level also goes higher. An exit signal is generated when price crosses below these levels.

XAUUSD Uptrend

Downward Trend

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

XAUUSD Downtrend

When 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.