Once the moving average stabilizes, the key to setting a stop loss is—placing the stop loss point at "the low point of the confirmed stabilization structure."



The reasoning is very straightforward:

1. This position is an area where buying interest is concentrated. Once broken, it indicates the stabilization structure has failed;
2. The stop loss space is small, risk is controllable, and it helps improve the risk-reward ratio.

Taking gold price movements as an example, after breaking through the downward trendline and re-establishing above the moving average to form a golden cross, a clear pullback occurs, with support near the moving average. When the price breaks upward again, the most reasonable stop loss level is set at the low point of that pullback.

No need for over-analysis or guesswork. The rule is clear: Moving average stabilization → Entry → Stop loss placed at the pullback low. The structure is clear, the space is defined, and the risk-reward ratio is obvious.
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)