analyse the general market conditions and structure, resistance and support levels, main turning points in the market, bar lows and highs, and other elements. In a trending market, we will frequently see the market pause and consolidate in a sideways manner after the trend makes a powerful move. Technical Stop Loss Adjustment, a very common approach, which usually involves waiting for any of the following to occur: A failed retest of the entry point. Anyway, we cant cast aside any point of view. Some specialist are sure that all the deposit of the trader can be absorbed by the Stop Loss. Consider whether that gives it enough time to reach the kind of profit target you are looking for. In such cases its better to use the pending order, such as stop loss or take profit order. The minute of delay often can cause the serious losses. If the company is oriented on the newbies, then the limit may be up to 15-20.
As for the take-profit or target price, it is an order that you send to your broker notifying them to close your position or trade when a certain price reaches a specified price level in profit. This means a level that will both inform us when our trade signal is no longer valid and that actually makes sense in the surrounding market structure. The ultimate purpose of stop-loss is to help a trader stay in a trade until the trade setup and original near-term directional bias are no longer valid. For a counter-trend trade setup, your task is to place the stop-loss just beyond either the high or low, made by the setup that indicates a potential trend change. What is Stop Loss? How to Use Stop Loss, basic recommendations: Stop Loss has to be on the level lower than the opened position, if it is buy order.