HOW TO SET STOP LOSS | 3 STRATEGIES EXPLAINED 📚

2022년 8월 23일

Hey traders,

In this post, we will discuss 3 classic trading strategies and stop placement rules.

1️⃣The first trading strategy is a trend line strategy.
The technique implies buying/selling the touch of strong trend lines, expecting a strong bullish/bearish reaction from that.

If you are buying a trend line, you should identify the previous low.
Your stop loss should lie strictly below that.

If you are selling a trend line, you should identify the previous high.
Your stop loss should lie strictly above that.

2️⃣The second trading strategy is a breakout trading strategy.
The technique implies buying/selling the breakout of a structure,
expecting a further bullish/bearish continuation.

If you are buying a breakout of a resistance, you should identify the previous low. Your stop loss should lie strictly below that.

If you are selling a breakout of a support, you should identify the previous high. Your stop loss should lie strictly above that.

3️⃣The third trading strategy is a range trading strategy.
The technique implies buying/selling the boundaries of horizontal ranges, expecting bullish/bearish reaction from them.

If you are buying the support of the range, your stop loss should strictly lie below the lowest point of support.

If you are selling the resistance of the range, your stop loss should strictly lie above the highest point of resistance.

As you can see, these stop placement techniques are very simple. Following them, you will avoid a lot of stop hunts and manipulations.

How do you set stop loss?


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