What is a Trailing Stop Loss Stocks Order?

A trailing stop loss is a stoploss levels that keeps adjusting itself automatically by a set number of pips once the stocks market moves in the direction of the trader's open trade by a number of pips.

For examples the trailing stop can be set at 30 pips & set to adjust itself to 30 pips automatically once the stocks instrument moves up by 5 or 10 pips. This means that this trailing stop loss order will keep trailing the stocks price as long as the price keeps heading in direction of the trader's open position.

This trailing stop loss will close the order once the stocks market starts to retrace & it retraces to the level of the most recent set trailing stop loss level.

A good indicator used to set trailing stop loss levels is Parabolic SAR +technical indicator:

Parabolic SAR Technical Indicator

Parabolic SAR is used by traders to set a trailing stocks price stop loss levels

Parabolic SAR provides good exit points which keep trailing the stocks price on a stocks trading chart.

In an upward stocks trend, you should close long trades when the price falls below the parabolic SAR indicator

In a downwards stocks trend, you should close short trades when the price rises above the parabolic SAR trading technical indicator.

If you are trading long then the stocks price is above the parabolic SAR, the parabolic SAR will move up every day, regardless of the direction in which the stocks price is moving. The amount the parabolic SAR moves up depends on the amount that stocks prices moves. Once stocks price moves below the parabolic SAR as shown and illustrated on the stocks example illustrated and explained below, then traders should close their open buy stock trades at the trailing stop level provided by the Parabolic SAR +technical indicator.

Parabolic SAR - Stock Technical Indicator for Setting Trailing StopLoss Stocks Order Levels