The stop order is an instruction to buy or sell when the price reaches a predetermined level.

This means
that it can be used to set entry and exit targets for the purposes of limiting potential losses or locking in
profitable gains. The stop order is often referred to as either just a stopor a stop loss.

Should you decide to go long on the GBP/USD and buy at a price of 1.5780 then you could set a trailing
stop at 20 pips (initially 1.5760).

should the price move against you and drop through the 1.5760 value, then your stop would be
activated and the trade closed.

However,

should the price increase, as you have predicted, then the trailing stop should track this value and
increase correspondingly.

Should the price continue to reach 1.5800 then the trailing stop would now be set at 20

pips below this new level i.e. at 1.5780.

The level of the stop will continue to rise proportionally to

correspond with any price rises. Should at any point the currency price begin to fall, then the trailing stop
does not drop back but remains at whatever level it reached prior to the reversal

The trade will remain open as long as the market does not move against you by more than 20 pips, at
which point the trade would be closed.

chandelier mt4 trailing stop loss

How to use trailing stop loss

Idea behind trailing stop loss is very simple. If price is above

trailing line, you should be long.

If it is below trailing line, you should be short. Simple asthat.

The main advantage of trailing stop loss is that it allows

you to stay in the trend and take bigprofit ofthat

Example above shows rather well how it works. It works as

stop line. You can see that when move up ended and price
closed below blue line, it was time to close trade.

settingsfor trailing stop loss

One settingsmay work great on specific currency and time frame but
they can be out of place on another

.Time frame for trailing stop loss

Time frame depends from your trading style, but you can try trailing
stop loss on time

frames like 15m, 30m, 1h. Trends here can last for sometime
and profit may be good .

If you go lower with trailing stop like 1m, 5m it is much

harder – mainly because rapid moves.

trailing stop loss but it works best when you join it with
other tools. trade in the direction of current trend.join trailing
stop loss with averages. tofilter false signals,

GBP/JPY,30m It is important to draw support/ resistance

lines because they help us to make

trading decision. price broke below that average, but notice thatit was
still above supportline.

USD/JPY,4h