Stock Indices Technical Indicators for Setting Stop losses in Stock Indices

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

A stock index trading systems trader can also place a stop loss stock indices order according to these stock indices technical indicators. Some stock indices technical indicators use mathematical equations to calculate where the order stop loss stock indices order should be set so as to provide an optimal exit. These stock indices indicators can be used as the basis for setting stop loss stock indices orders. These stock indices indicators follow stock index price action of a stock indices instrument closely and define the boundaries which the stock indices prices should move along in. When the stock index price moves outside these boundaries it is therefore best to close the open stock index trades because stock index price stops moving in that particular direction.

Some of the Technical stock indices indicators that can be used to set stop loss stock indices orders are:

Automatic Stop Loss Stock Indices Order and Take Profit Stock Indices Order Indicator

Parabolic SAR is like an Automatic Stop Loss Stock Indices Order and Take Profit Stock Indices Order Indicator used to set a trailing stock index price stop loss

The Parabolic SAR provides excellent exit points.

In an upward stock indices trend, you should close long positions when the stock index price falls below the Parabolic SAR stock indices indicator

In a downward stock indices trend, you should close short positions when the stock index price rises above the Parabolic SAR.

If you are long then the stock index price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the stock index price is moving. The amount the Parabolic SAR indicator moves up depends on the amount that stock indices prices moves.

Parabolic SAR - Stock Index Indicator - Automatic Stop Loss Stock Indices Order and Take Profit Stock Indices Order Indicator

Picture of parabolic SAR and how it is used

Stock Indices Indicator for Setting Stop Loss Stock Indices Orders

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

Since these Bollinger bands are used to encompass the stock index price action, the bands can be used to set stop losses just outside the area of the bands.

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

Automatic Stop Loss Stock Indices Order and Take Profit Stock Indices Order Indicator

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

Fibonacci Retracement level 61.8 % is the most commonly used level for setting stop losses. A stop loss stock indices order should be set just below 61.8 % Fibonacci retracement level

The 61.8 % Fibonacci retracement level is used to set these orders since its rarely hit.

Fibonacci Indicator Stop Loss Stock Indices Order Setting at 61.8 % Retracement Level

Fibonacci retracement level 61.8% - Fibonacci Stock Index Indicator

Support and Resistance Levels Lines

Support and resistance levels can be used to set stop loss levels where the stop loss stock indices orders are set just above or below the support or resistance.

• Buy Stock Indices Trade - Stop Loss Stock Indices Order set a few pips below the support

Buy Stock Indices Trade - Stop Loss Stock Indices Order set a few pips below the support

• Sell Stock Indices Trade - Stop Loss Stock Indices Order set a few pips above the resistance

Sell Stock Indices Trade - Stop Loss Stock Indices Order set a few pips above the resistance