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

Created by Tushar Chandes.

This is a volatility based indicator which's used to estimate levels to set stop loss levels. Distance at which it estimates/calculates trailing stop level is determined by market price volatility.

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

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

This stop level line has much wider price range in terms of where it trails stoploss order as compared and analyzed to short stop level that utilizes tight stoploss order.

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

XAU USD Analysis and How to Generate Trading Signals

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

Upwards Trend

In an upwards trend these levels will follow below the trading price. The trader can use either the short stop level line or the long stop level. The short stop level line will be used to set a tight stop loss while the long stop level will be used to set a stop loss level that is not very narrow/tight. As the price goes higher the trailing stop level will also move higher. An exit signal gets derived and generated when price crosses below these levels.

XAUUSD Uptrend

Downward Trend

In a downwards trend the stoploss order levels will trail above the price these 2 levels can be used to set these stoploss levels. As the price drops further these levels will continue to drop lower and follow the price lower. An exit signal gets derived & generated when the price crosses above these levels.

XAUUSD Downtrend

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

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