Let’s talk about technical analysis & stops.
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https://video-ideas.tradingview.com/2/27912019-wGj4fe-ruccpKv-u.mp4
Technical analysis is not your decision-making process — it’s a tool to help you structure better trading decisions by studying past price movements to anticipate likely future moves.
Every time you look at a chart, you should decide:
Do I want to trade at all?
What’s my entry?
Where’s my stop (when does my thesis fail)?
What’s my target (where will I take profits)?
Where to put your stop?
Take the S&P 500 daily chart. It’s been trending up strongly. Many traders use an exponential moving average (EMA) as a dynamic stop.
But:
• A 9 EMA often stops you out too early on strong trends.
• Adjusting to a 15 or 16 EMA could keep you in the trade longer, letting your winners run.
In tools like TradingView, you can visually adjust the EMA and see in real time how it would have kept you in or taken you out.
Key takeaway:
When price closes below your EMA stop — that’s your signal to exit and lock in profits.
Use TA to structure your trades, not just spot pretty patterns.
What’s your favourite method for setting stops?
#trading #crypto #USDT #TradingView