Energies Trading Indicators For Setting Stop losses In Energies
Some energies indicators are used for setting stop losses taking away the need for energies traders to perform complex calculations on where to place these stop loss energies trade orders.
A energies trading systems trader can also set a stop loss order according to these indicators. Some energies technical indicators use mathematical equations to calculate where the order stop loss order should be set so as to provide an optimal exit. These energies indicators can be used as the basis for setting stop loss orders. These energies indicators follow energies price action of a energies instrument closely and define the boundaries which the energies prices should move along in. When the energies price moves outside these boundaries it is therefore best to close the open energies trades because energies price stops moving in that particular direction.
Some of the Technical energies indicators that can be used to set stop loss orders are:
Parabolic SAR Technical Indicator
Parabolic SAR is like an Automatic Stop Loss Energies Trading Order & Take Profit Energies Trading Order Indicator used to set a trailing energies price stop loss
The Parabolic SAR provides excellent exit points.
In an upwards energies trend, you should close long trades when the price falls below the Parabolic SAR technical indicator
In a downwards energies trend, you should close short trades when the price rises above the Parabolic SAR.
If you are long then the energies price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the energies price is moving. The amount the Parabolic SAR indicator moves up depends on the amount that energies prices moves.
Parabolic SAR - Energies Indicator - Automatic Stop Loss Energies Trading Order & Take Profit Energies Trading Order Technical Indicator
Picture of parabolic SAR and how it is used
Bollinger Bands Technical Indicator
Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands indicator consist of 3 bands designed to encompass the majority of a energies instruments energies price action. The middle band is a basis for the intermediate term energies trend, typically it is 20 period simple moving average, which is also the base for the upper and lower bands. The upper band's distance and lower band's distance from the middle band is determined by volatility of trading price.
Since these Bollinger bands are used to encompass the energy price action, the bands can be used by traders to set stop-losses outside the area just outside of these bands.
Bollinger Bands Setting Stop Loss Energies Trading Order Level - Bollinger Bands Energies Technical indicator
Energies Fibo Retracement Levels Indicator
Fibonacci retracement levels provide areas of support & resistance, these can be used to set stop-loss levels.
Energies Trading Fibonacci Retracement level 61.8 % is the most commonly used level for setting stoplosses. A stop-loss order should be set just below 61.8 % fibonacci retracement level
The 61.8% Fib retracement level trading indicator is used to set these orders because its rarely hit.
Fibonacci Indicator Stop Loss Energies Order Setting at 61.8 % Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Indicator
Support and Resistance Levels Lines
Support and resistance levels can be used to set stop loss levels where the stop loss orders are set just above or below the support or resistance.
- Buy Energies Trade - Stop Loss Energies Trading Order set few pips below the support
Buy Energy Trade - Stop Loss Energies Trading Order set a few pips below the support
- Sell Energies Trade - Stop Loss Energies Trading Order set a few pips above the resistance
Sell Energy Trade - Stop Loss Energies Trading Order set few pips above the resistance
