Indices Indicators for Setting Stop losses in Indices Trading

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

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

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

Automatic Stop Loss Stock Indices Order & Take Profit Indices Order Indicator

Parabolic SAR is like an Automatic Stop Loss Indices Order & Take Profit Indices Order Indicator used to set a trailing stock indices trading price stop loss

Parabolic SAR provides excellent exit points.

In an upward indices trend, you should close long trades when the stock indices trading price falls below the Parabolic SAR indicator

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

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

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

Picture of parabolic SAR and how it is used

Indices Indicator for Setting Stop Loss 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 indices trading instruments stock indices trading price action. The middle band is a basis for the intermediate term indices trend, typically it is 20 period simple moving average, which is also the base for 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 indices trading price action, the bands can be used to set stop-loss orders outside the areas of the bands.

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

Automatic Stop Loss Indices Order & Take Profit Stock Indices Order Technical Indicator

Fibonacci retracement levels provide areas of support and resistance, these can then be used to set stop-loss levels.

Fibonacci Retracement level 61.8% is the most oftenly used level for setting stop-losses. A stoploss order should be set just below 61.8% Fibonacci retracement level

The 61.80% Fibo retracement level indicator is used to set these orders since its rarely hit.

Fibonacci Indicator Stop Loss Indices Order Setting at 61.80% Retracement Level

Fibonacci retracement level 61.8% - Fibonacci Indicator

Support & Resistance Levels Lines

Support and resistance levels can be used to set stop loss levels where the stop loss stock indices orders are set just above or below the support or resistance.

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

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

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

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