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Trailing Stop Loss Stock Indices Order Levels Stock Indices Technical Analysis and Trailing Stop Loss Stock Indices Order Levels Stock Indices Signals

Developed by Tushar Chande.


This is a volatility based indicator that is used to estimate levels to set stop loss levels. The distance at which it estimates the trailing stop level is determined based on market volatility.


Trailing Stoploss Levels Technical Stock Indices Indicator



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


  • Long Stop Level - Blue Line

  • Short Stop Level - Red Line


The long stop level line has a much wider range than in terms of where it trails the stop loss as compared to the short stop level which implements a tight stop loss.


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



Stock Indices Technical Analysis and Generating Stock Indices 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 upward stock indices trend these levels will follow below the stock indices 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 stock index price goes higher the trailing level also goes higher. An exit signal is generated when stock index price crosses below these levels.


Trailing Stop Levels Technical Stock Index Indicator on Stock Indices Trading Uptrend

Stock Indices Trading Uptrend


Downward Trend

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

Trailing Stop Levels Technical Stock Index Indicator on Stock Indices Trading Downtrend

Stock Indices Trading Downtrend


When stock index 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.

 

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