Trailing stop
Technical analysisA stop-loss that moves up as price rises, typically a set ATR multiple below the highest close.
In plain terms
Lets winners run, and always gives back a slice at the top. That giving-back is the price of the runners.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Chandelier exit
Technical analysisA trailing stop placed a multiple of ATR below the highest high since entry.
In plain terms
The standard method, because it widens automatically as the stock gets wilder and tightens as it settles.
Give-back
Technical analysisThe profit returned between a position's peak and the price at which the trailing stop finally triggers.
In plain terms
Not a failure of the stop — the fee for having stayed in. Trying to eliminate it is what converts big winners into medium ones.
Parabolic SAR
Technical analysisAlso called: SAR, Stop and reverse
A trend-following indicator plotting dots that trail price and accelerate towards it over time, used as a trailing stop; SAR stands for “stop and reverse”.
In plain terms
Dots that chase price and flip to the other side when hit. Like Supertrend, it whipsaws in ranges.
Supertrend
Technical analysisA trend-following overlay that plots a single ATR-based line below price in an uptrend and above it in a downtrend, flipping when price closes through it — effectively a volatility-scaled trailing stop.
In plain terms
The green-and-red line that trails price, very popular with Indian intraday traders. Excellent in a trend, a loss machine in a sideways market.
Kijun-sen
Technical analysisAlso called: Base line
The Ichimoku base line: the midpoint of the highest high and lowest low of the last twenty-six bars.
In plain terms
The slower Ichimoku line, often used as a trailing stop in an established trend.