Trailing Stop Loss CFDs Order Levels CFDs Analysis & Trailing Stop Loss CFDs Order Levels CFDs Signals

Created by Tushar Chandes.

This is a volatility based indicator that's used to estimate levels to set stoploss levels. Distance at which it estimates the trailing stop level is determined based on market volatility.

The Levels of the two lines, these 2 lines represent:

• Long Stop Level - Blue Line
• Short Stop Level - Red Line

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

This indicator is volatility based when it comes to trailing and following the price action. Trailing Stop Levels will trail the above the price in a downwards market cfd trend and trails below the price in an upwards market trend.

CFDs Analysis & Generating CFDs 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.

Upwards Trend

In an upwards trend these levels will follow below the cfd 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 price goes higher the trailing level also goes higher. An exit signal is generated when price crosses below these levels.

CFD Trading Uptrend

Downwards CFDs Trading Trend

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

CFD Trading Downtrend

When 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.