Trailing stop

The idea

A stop reference that follows favourable movement by a defined amount; gaps remain possible.

Try the scenario

A 5-point trail rises as a long position makes new highs.

Check your understanding

Which statement is supported by this definition?

• This concept guarantees the next five candles.
• The trailing stop guarantees every unrealised gain.
• A stop reference that follows favourable movement by a defined amount; gaps remain possible.

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