Start Learning Forex Now: We Provide Tutorial in EN / 中文.
Forex Malaysia 马来西亚外汇

Setting Stop Losses 设定止损: Page 4 of 8

Facebook icon

How To Set A Stop Loss Based On Price Volatility

To put it in simple terms, volatility is the amount a market can potentially move over a given time.

Knowing how much a currency pair tends to move can help you set the correct stop loss levels and avoid being prematurely taken out of a trade on random fluctuations of price.

For instance, if you are in a swing trade and you know that EUR/USD has moved around 100 pips a day over the past month, setting your stop to 20 pips will probably get you stopped out too early on a small intraday move against you.

Knowing the average volatility helps you set your stops to give your trade a little breathing room and a chance to be right.

As we explained in a previous lesson, one way to measure volatility is by using Bollinger Bands. You can use Bollinger bands to give you an idea of how volatile the market is right now.

This can be particularly useful if you are doing some range trading. Simply set your stop beyond the bands. If price hits this point, it means volatility is picking up and a breakout could be in play.

Place your volatility stop past the Bollinger bands

Another way to find the average volatility is using the Average True Range (ATR) indicator. This is a common indicator that can be found on most charting platforms, and it’s really easy to use.

All the ATR requires is that you input the “period” or amount of bars, candlesticks, or time it looks back to calculate the average range.

For example, if you are looking at a daily chart, and you input “20” into the settings, then the ATR indicator will magically calculate the average range for the pair over the past 20 days.

Or if you are looking at an hourly chart and you input 50 into the settings, then the ATR indicator will show you the average movement of the last 50 hours. Pretty sweet, huh?

How To Set A Stop Loss Based On Price Volatility

This process can be applied by itself as a stop or in conjunction with other stop loss techniques.

The point is to give your trade enough breathing room for fluctuations here and there before it heads your way… and hopefully it does.

波动止损

简而言之,波动就是一段时间内,市场可能出现的潜在的变动幅度。

了解货币对的变动幅度可以帮助你正确的设定止损水平,避免因价格的任意波动,过早的止损离场。

例如,如果你处于波段交易之中,你知道在过去的1个月里,欧元/美元每日变动幅度约为100点,将止损设定为20点会使你过早的离场,只要日内出现背离你的交易的小变动。

知道平均变动幅度可以帮助你在设定止损时给自己的交易预留一点呼吸空间和调整机会。

正如我们在之前的课程里介绍的,衡量变动的方法之一是利用布林格带。你可以通过布里格带来了解目前市场大致的波动幅度。

这一方法在做区间交易时相当有效。只要将止损设定在布林格带之外的区域就可以了。如果价格达到该点,则意味着波动增加了,突破出现了。

另一种寻找平均波动幅度的方法是使用平均真实波动幅度(ATR)指示器。这是一个常用的指示器,可以再大多数的图表平台中找到,而且用起来十分简单。

ATR所需的就是你将它需要回溯的“时间段”或条、烛台的数目,或时间输入进去,计算出平均波动幅度。

例如,如果你看的是张日图,你在设置一栏里输入20,ATR指示器就神奇的计算出该货币对过去20天内的平均波动幅度了。

或者,你在看小时图,你在设置一栏里输入50,ATR指示器将显示出50个小时的平均变动是多少。很贴心,哈?

这个方法可单独作为止损设定的方法,也可以与其他止损技巧联合使用。

关键在于要给你的交易足够的呼吸空间,以应对在按你的交易设定变动前,市场出现的这样或那样的波动……希望它能按照你的设想变动。