How Do I Interpret Trailing Stop Loss Order?
Bitcoin Trade a Trailing StopLoss
A trailing stop loss is a stop loss levels that keeps adjusting itself automatically by a set number of pips once the btcusd trading market heads in +the direction of the trader's open trade by a number of pips.
For example the trailing stop can be set at 30 pips and set to adjust itself to 30 pips automatically once the instrument shifts up by 5 or 10 pips. This means that this trailing stop loss crypto order will keep trailing the bitcoin crypto currency price as long as the bitcoin crypto currency price keeps heading in direction of the trader's open position.
This trailing stoploss will close the order once the btcusd trading market starts to retrace and it retraces to the level of the most recently set trailing stop loss level.
A good indicator used to set trailing stop loss levels is the Parabolic SAR indicator:
Parabolic SAR Indicator
Parabolic SAR is used by traders to set trailing bitcoin price stop loss areas
Parabolic SAR provides good exit points which keep trailing the bitcoin price of a bitcoin crypto.
In an upwards btcusd crypto trend, you should close long trade positions when the bitcoin price drops below the parabolic SAR
In a downward bitcoin crypto trend, you should close short trade positions when the btcusd crypto price rises above the parabolic SAR.
If you're trading long then the bitcoin price is above the SAR, parabolic SAR will move up everyday, regardless of the direction in which the btcusd crypto price is moving. The amount parabolic SAR indicator moves up depends on the amount that bitcoin prices moves. Once bitcoin price moves below the parabolic SAR as shown on the trading example illustrated below, then traders should close open buy trades at the trailing stop level provided by the Parabolic SAR indicator.
Parabolic SAR - Technical Indicator for Setting Trailing StopLoss Bitcoin Order Areas
Analyze Bitcoin Trailing Stop Loss Bitcoin Order
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