Indicators for Setting Stop losses in Stock Indices

Some stock indicators are used for setting stop losses taking away the need for stock traders to perform complex calculations on where to place these stop loss stock trade orders.

A trading systems trader can also set a stop loss order according to these indicators. Some technical indicators use mathematical equations to calculate where the order stop loss order should be set so as to provide an optimal exit. These indicators can be used as the basis for setting stop loss orders. These indicators follow stock price action of a stock indices instrument closely and define the boundaries which the stock prices should move along in. When the stock price moves outside these boundaries it is therefore best to close the open stock trades because stock price stops moving in that particular direction.

Some of the Technical indicators that can be used to set stop loss orders are:

Automatic Stop Loss Stock Indices Order & TakeProfit Indices Order Indicator

Parabolic SAR is like an Automatic Stop Loss Stock Indices Order & TakeProfit Stock Indices Order Indicator used to set a trailing stock price stop loss

Parabolic SAR provides excellent exit points.

In an upwards trend, you should close long trades when the price falls below the Parabolic SAR technical indicator

In a downward stock trend, you should close short trades when the price rises above the Parabolic SAR.

If you are long then the stock price is above the parabolic SAR, the SAR will move upward every day, regardless of the direction in which the stock price is moving. Amount the Parabolic SAR indicator moves upwards depends on the amount that stock prices moves.

Parabolic SAR - Indicator - Automatic Stop Loss Stock Indices Order & TakeProfit Stock Indices Order Technical Indicator

Picture of parabolic SAR & how it's used

Indicator for Setting Stop Loss Stock Indices Orders

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 stock indices instruments stock price action. The middle band is a basis for the intermediate term stock trend, typically it is a 20 period simple moving average, which also serves as a base for the upper band as well as the lower band. Upper band's distance & lower band's distance from the middle-band is usually determined by volatility.

Since these Bollinger bands are used to encompass the stock price action, the bollinger bands can be used by traders to set stop loss orders just outside the areas of the bands.

Bollinger Band Setting Stop Loss Stock Indices Order Level - Bollinger Bands Stock Indices Technical indicator

Automatic Stop Loss Indices Order & TakeProfit Stock Indices Order Technical Indicator

Fib retracement levels provide areas of support & resistance, these can be used to set stop loss levels.

Fib Retracement level 61.80% is the most oftenly used level for setting stoplosses. A stoploss order should be set just below 61.8% fib retracement level

The 61.8 % Fib retracement level technical indicator is used to set these orders because its rarely hit.

Fibo Indicator StopLoss Stock Indices Order Setting at 61.80% Retracement Level

Fibonacci retracement level 61.8% - Fibonacci Indicator

Support and Resistance Levels Lines

Support & resistance levels can be used to set stop loss levels where the stop losses are set just above or below the support or resistance.

• Buy Stock Indices Trade - Stop Loss Stock Indices Order set a few pips below the support

Buy Stock Indices Trade - Stop Loss Stock Indices Order set few pips below the support

• Sell Stock Indices Trade - Stop Loss Stock Indices Order set a few pips above the resistance

Sell Stock Indices Trade - Stop Loss Stock Indices Order set few pips above the resistance