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2016issue C0834-38

Stage a Trailing stop toward a planned target

The archive workflow names a planned Pivot point or Support and resistance destination, then stages a Trailing stop as price travels toward it. A later giveback from a near-target profit can close what remains rather than reverse through the locked-in gain.

  • A planned target can be a daily, weekly, or monthly Pivot point, a prior high or low from recent sessions, or a widely watched Support and resistance area such as a 20-period or 200-day moving average.
  • Once price has traveled about half the planned distance, a Trailing stop at half of open profit locks in about one-quarter of the intended move.
  • When price reaches about 80 percent of the intended target, the trail can tighten to 80 percent of open profit, and a later 10 percent giveback from a 90-percent-of-target profit can close the rest.
  • Initial stop placement is strategy-specific, including an exit as soon as price closes back through very short moving averages on a short-horizon continuation.
Entries in this reading3 entries
Current trackPivot point45 readingsTrailing stop87 readingsSupport and resistance170 readings

Plan the destination first

A planned target can be a daily, weekly, or monthly Pivot point, a prior high or low from recent sessions, or a widely watched Support and resistance area such as a 20-period or 200-day moving average.

The archive workflow then stages a Trailing stop as price travels toward that planned destination.

Stage the trail toward the target

Once price has traveled about half the planned distance to that target, a trail can be placed at half of the open profit, which locks in about one-quarter of the intended move.

When price reaches about 80 percent of the intended target, the trail can be tightened to 80 percent of open profit so more of the remaining move is protected.

If price later gives back about 10 percent from a 90-percent-of-target profit, the remaining position can be closed rather than allowed to reverse through the locked-in gain.

Keep the first stop strategy-specific

Initial stop placement is strategy-specific. A short-horizon continuation setup that is expected to bounce off very short moving averages can be exited as soon as price closes back through those lines.

That first exit is separate from the later trail against the planned Pivot point or Support and resistance destination.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
28 of 38 in the Pivot point track
201620-23 pp.Next on Pivot pointSmoothed RSI and full-cut pivots for option-income exitsA 10-day simple moving average of 14-day RSI is the constant-scale uptrend label used before any exit hunt begins.
All readings on this track · 38 readings
  1. 1988Constructing action-reaction lines from two pivots
  2. 1988Constructing intradaily point-and-figure boxes and pivot ladders
  3. 1991Constructing layered support and resistance from swings, pivots, and retracements
  4. 1994Three locks on a day-session order, then a staged exit
  5. 1994Building a five-level daily pivot grid
  6. 1996Constructing daily pivot points from session prices
  7. 1996Higher time frame balance points as a trend and band filter
  8. 1998Cup-with-handle construction rules
  9. 2000Pivot levels as a daily trade hypothesis
  10. 2001Construct a same-session polarity card around the daily pivot
  11. 2001Trading inside the cup-with-handle before the breakout
  12. 2005A lower-low rebound as one entry, abstention, and stop routine
  13. 2006Constructing session pivot maps from the prior high, low, and close
  14. 2006Constructing a pivot grid for stops and buy-stops
  15. 2006Monoparametric automatic trendline construction
  16. 2008Write the exit before the entry
  17. 2010Dynamic-pivot range grids for trend bias
  18. 2010Reverse-entry exits for pairs, pivots and support
  19. 2011Sequencing pairs, futures pivots, and implied volatility
  20. 2013Constructing Camarilla levels from prior range
  21. 2013Camarilla levels as a multi-timeframe map of reversion and breakout
  22. 2013Constructing a camarilla-grid from a completed lookback range
  23. 2013Constructing daily pivot support and resistance rungs
  24. 2014Constructing daily pivot levels from prior-session OHLC
  25. 2014Next-session pivot support and resistance from daily bars
  26. 2014Constructing session pivot rails from the prior-day range
  27. 2014Evaluating moving-average, pivot, and support-resistance filters
  28. 2016Stage a Trailing stop toward a planned target
  29. 2016Smoothed RSI and full-cut pivots for option-income exits
  30. 2017Constructing a weekly seasonality pivot scaffold
  31. 2017Seasonality and pivot points as scenario maps, not forecasts
  32. 2018Wave pivots, strength filters, and option premium
  33. 2018Constructing Fibonacci and daily pivot support maps
  34. 2018Building a daily pivot lattice with Fibonacci rails
  35. 2019Prior-session pivot channels for same-day entries
  36. 2019Constructing intraday pivot channels from prior-session levels
  37. 2020Variable-strength pivot highs as falsifiable entry filters
  38. 2020A high-volume-pivot long after a multi-week decline
By fieldEntry and exit rules206 readingsBy year201678 readings
All 45 readings tagged Pivot point
Also on Pivot point5 readings
1994Building a five-level daily pivot grid2019Prior-session pivot channels for same-day entries1988Constructing intradaily point-and-figure boxes and pivot ladders1991Constructing layered support and resistance from swings, pivots, and retracements1996Higher time frame balance points as a trend and band filter