Trailing Stop Loss Levels Forex Technical Analysis MT5 Indicator

Created by Tushar Chande.

This is a volatility based indicator that is used to estimate levels to set stoploss 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

Long stop level line has a much wider range in terms of where it trails the stop-loss as compared to the short stop level that implements a tight stop-loss.

This MT5 indicator is volatility based when it comes to trailing and following the forex price action. Trailing Stop Levels will trail the above the forex price in a downward market forex trend and trails below the forex price in an upward market trend.

FX Technical Analysis & How to Generate 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.

Upward FX Trading Trend

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

Forex Uptrend

Downwards Forex Trading Trend

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

Forex Downtrend

When forex 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.