The trade begins when a trader takes a long position based on a Slow Stochastics crossover signaling a buy. When the trade is entered at that point, the stop is located at the level labeled “Initial Stop”. As the trade progresses ...Read more
- The trade begins when a trader takes a long position based on a Slow Stochastics crossover signaling a buy. When the trade is entered at that point, the stop is located at the level labeled “Initial Stop”.
As the trade progresses to the upside, and as price action takes out each successive high, the stop is moved up to the next higher low.
Looking at the chart for example, when price moves above the high labeled #1, the stop is moved from the Initial Stop level to Stop #1. As price takes out the next high at #2, the stop is trailed from Stop #1 to Stop #2. This procedure continues as long as price continues to advance and make higher highs and higher lows.
We can see, however, that price retraces below Stop #4 thereby taking the trader out of the trade with a profit of about 325 pips.
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There are some ways for being cautious when using crypto currency exchanges. You can make use of reputable and well-established exchanges. You can do research on an exchange's security practices, trading volume, and user reviews before creating your account. You can also use two-factor authenticatioRead more
There are some ways for being cautious when using crypto currency exchanges. You can make use of reputable and well-established exchanges. You can do research on an exchange’s security practices, trading volume, and user reviews before creating your account. You can also use two-factor authentication. This two-factor authentication gives an extra layer of security beyond just a password when you are logging in.
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