#ForexChief #TrailingStop #TakeProfit #StopLoss #trading #forexschool #forexeducation ⠀
💱 Trailing Stop: what is it and what for?⠀
💵 A successful entry into the market is only half of the success, you still need to be able (and have time!) To take profit. Trailing Stop mode is designed to minimize losses - it automatically manages the StopLoss order. Such a script is built into most trading platforms, and the process parameters are determined when a trade is opened.
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Trailing Stop moves your StopLoss following the price only in the Profit direction:▪️ As long as the profit does not exceed the "step" of Trailing Stop, no action occurs and your Stoploss remains on the spot;
▪️ When the dynamic profit exceeds the “step”, StopLoss is moved by the Trailing Stop value (in points) from the current price;
▪️ If the price goes against the trade (at a loss), then StopLoss remains at the previous position;
▪️ In the Trailing Stop mode, the TakeProfit order, placed at the opening of a deal, does not move.
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Trailing Stop works only with an open trade. A separate trailing mode is set for each position (or group of deals).
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Using a trailing stop is especially beneficial:▪️ In an active but chaotic market without a clear trend;
▪️ On a speculative move, if its endpoint is difficult to determine.
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If you have clearly calculated the target and the market is steadily moving towards it, then Trailing Stop is practically useless, and sometimes even dangerous. We will talk about it in the next post.
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Profits to y’all!