Technical analysis is not your decision-making process — it’s a tool to help you structure better trading decisions by studying past price movements to anticipate likely future moves.
👉 Every time you look at a chart, you should decide:
✅ Do I want to trade at all?
✅ What’s my entry?
✅ Where’s my stop (when does my thesis fail)?
✅ What’s my target (where will I take profits)?
________________________________________
🛑 Where to put your stop?
Take the S&P 500 daily chart. It’s been trending up strongly. Many traders use an exponential moving average (EMA) as a dynamic stop.
But:
• A 9 EMA often stops you out too early on strong trends.
• Adjusting to a 15 or 16 EMA could keep you in the trade longer, letting your winners run.
In tools like TradingView, you can visually adjust the EMA and see in real time how it would have kept you in or taken you out.
________________________________________
💡 Key takeaway:
When price closes below your EMA stop — that’s your signal to exit and lock in profits.
Use TA to structure your trades, not just spot pretty patterns.
________________________________________
💬 What’s your favourite method for setting stops?
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
👉 Every time you look at a chart, you should decide:
✅ Do I want to trade at all?
✅ What’s my entry?
✅ Where’s my stop (when does my thesis fail)?
✅ What’s my target (where will I take profits)?
________________________________________
🛑 Where to put your stop?
Take the S&P 500 daily chart. It’s been trending up strongly. Many traders use an exponential moving average (EMA) as a dynamic stop.
But:
• A 9 EMA often stops you out too early on strong trends.
• Adjusting to a 15 or 16 EMA could keep you in the trade longer, letting your winners run.
In tools like TradingView, you can visually adjust the EMA and see in real time how it would have kept you in or taken you out.
________________________________________
💡 Key takeaway:
When price closes below your EMA stop — that’s your signal to exit and lock in profits.
Use TA to structure your trades, not just spot pretty patterns.
________________________________________
💬 What’s your favourite method for setting stops?
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.