Trailing Stops and More | Swing Trading (Days to Weeks)

Trailing Stops and More | Swing Trading (Days to Weeks)

Show Video

Good day, everyone John McNichol here in Welcome to swing trading , two weeks So we're looking at a another attempt at a turnaround Tuesday, we got possibly a little bounce, however, the Fed may have something to say to that tomorrow. So stick around. Alright Hey, it's great to see those that are live with us today from Wayne Robert. Box trader Frank Seattle, Michelle Bill And everyone else that is logging on the day. It's great to have you here today. Ah we let's see. We got James Boyd helping out on the chat, folks.

So any questions I am unable to get to He'll be more than happy to help. James has a vast amount experience Great energy and some good humor as well. Hopefully you're able to follow him on his many Webcasts as well on Twitter . You can follow us both. There he is at J. B. O Y D Underscored D a And you can follow me at J. McNichol underscore T d A. You'll see that at the bottom of the screen throughout the presentation. And a great way to

learn about your instructors, along with the markets, such as a James is another grandfather, I believe once again, but, he has a grandchild recently born there and congratulations to him and his family. Let's go ahead and take care of disclosures, folks. We'll get right into it. The contents intended for information purposes only educational as well. Non investment advice recommendation of any security strategy or account type options not suitable for all investors. Ah straddles other multileg option strategies often involve greater , more complex risk than single eOption's. Likewise. Long

options entire position is at risk. Whether it's a long call or a long put likewise, short options can be assigned at any time. Up until expiration, regardless of the end the money amount And you're encouraged practice what you learned here today with tools such as paperMoney software. Which is for educational purposes only and successful virtual trading during one time period does not guarantee success of actual funds general later time period as market conditions change continuously. Commission's important factors should be considered when evaluating any trade. While his Webcast may

discuss technical analysis approaches, including fundamental analysis may serve very different views. And demonstrating the functionality . The platform, we will be used actual symbols keep in mind. Tdameritrade does not make recommendations or term stability of any security or strategy for individual traders . Any investment decision you make in your self directed account. Is solely a responsibility and since we'll also be talking about these today a stop loss order will not guarantee an execution at or near an activation price once activated compete with other income and market orders. There's my bio. Welcome to those of that are new. And yes, this

is why I always have to question if how many grandkids James has . He is a fairly young man in the interview not. He's a good looking one, too. Uh hopefully I kind of fall close there. But you can see I've been around for a bit. Uh and what I teach, certainly passionate about what we teach here at Tdameritrade education. And for those of you that are new. Thanks for joining

us here today. This class, maybe a little. Uh more. Intermediate to advanced depending on your understanding of the think or swim platform, and some of the tools that are available there, But here is our agenda. We're going to go ahead and take a look. Ah at current market conditions leading into the Fed to Morrow will go ahead and utilize the think or swim platform to adjust stops as well as conditional orders. Those of

you joined us last week. We actually talked about examples of swing trades, both from a bullish perspective as well as a bearish perspective, you recall We did a practice trade with a buy stop to look to trigger if the price traded above a certain price. Well, that order did, Phil, I believe in yesterday's trading session after kinda consolidating at that resistance , so we'll probably use that as an example. As far as adjusting stops, and we'll do that from the standpoint of traditional stops, as well as conditional orders that one may be able to utilize. And actually Use those

conditions based off of possibly what a study may be doing some common studies we've used in the past for stops have been a tr average true range as well as a parabolic sar, so we'll go ahead and Touch on those here today. All right, so hopefully you're ready for the ride there. Let's go ahead and bring up the think or swim platform. Starting off with the S and P five. We can

see uh, with some hammer in on Monday. Ah as there was some selling, I do apologize in advance that, My original and drawing tools are a bit defunct . I need to try and figure see if I can get it working. I'm not as fancy with these other tools here, but I'll try and get through there. You can see that hammer in action. Yesterday on

the S and P. 500 today's candle trading above the high of the low day. So we have an example of potentially a CAHOLD-. There is still an hour left in the market, and this is common as far as a swing bounce in mind, the trend is still down. So any

type of bullish move AH, traders maybe keep an eye on previous highs as far as resistance if they choose to do a bullish trade thinking about near term targets. Previous levels of support, acting as new resistance. Okay? Ah looking at other indices, the NASDAQ And we talked about the NASDAQ. Quite a bit in the past. You know, it is in a bear market based off of being off 20% from those highs, however are seeing At least an attempt leading into the Fed to kind of hold some of these previous low ranges we did break below there, but kind of a key Fibonacci retracement. Believe going back to the Ah, the rally back in November believe of 20.

Yeah this two thirds retracement goes back to the rally when the NASDAQ had broken out back in November. And interestingly if there was more selling pressure notice how the 50% retracement of a longer term Fib to lows in 2020 would concur with some of these previous highs, so being interesting to see if they're selling continues. Whether the Fed is a catalyst for that, as well as additional earnings and guidance going forward markets still. But again, at least in attempt to hold off some of those lows there. Looking at the Russell. Russell as well again a

bit of a bounce. And looking at it from a standpoint of previously. Ah at least getting back into that low range and you can see we did break a bit below those clothes and ranges and that can also be an area resistance any type of countermoves. So Long way for a reversal or a bullish reversal, as we teach in our breakout in reversal patterns, you know when you take a look at some of those more common averages know the 55 period moving average here. Maybe some of you are looking at a 50 day least signs of an intermediate reversal, you know , 200 day moving averages as well. I can go ahead and just

switch over a style here. Let's go ahead, Bring up 50 and 200 Day. You can see we have a ways to go to reclaim. Ah, this correction in the case of the small caps. A bear market and where those averages can also act as resistance. Looking at

the volatility. Volatility has backed off considerably. We've talked about this in the past as well. Looking at kind of the higher range volatility. Still holding hasn't taken a leg up.

Ah pointing towards more risk in the market, so Good sign, at least initially leading into the feds announcement tomorrow. Okay? All right, And I guess quick, Lance over here on the left on some of the sector action. Energy financials materials leading So kind of more on the commodities front. That would probably make the assumption that things possibly like the dollar, maybe backing off a bit. If not backing off it at least slowing down from its great acceleration that it did, as many commodities are priced in dollars. Ah so ah, possibly a combination. There. Ah also

looking at any of the losers. Consumer staples consumer, discretionary in negative territory, so a little bit of a mix there on the consumer side. As markets trying to recover leading into the Fed, however. When we look at things over the last month. Last 21 days. Ah not many sectors have escaped being in negative territory there with the exception of energy, and I believe consumer staples just squeezing out a little bit of a game there. Alright so we'll see

what the Fed has in store for us tomorrow. Markets are pricing in. Ah 50% Or it's not 50% a 50 basis point hike there. Um Some

if there was any surprises for a three quarters that can impact the market. Likewise with the Fed has to say about their quantitative tightening. Selling off their bonds and other assets there. The markets are probably going to be interesting to hear what they have to say there.

Alright let's go ahead and get on with the show here. So we said we were gonna talk a little bit about Utilizing to think or swim platform to adjust stops and talk about some good additional order. So let's go ahead and take a look at Ah, some of our existing practice trades here. And so I'm gonna go

ahead and bring up, think or swim. We're going to go to the monitor tab. And Ah, just looking at some of our previous positions now Carbonneau is an example of a long put vertical We were targeting around the $90 . Ah probably if we're more directional and more bearish, could have selected a lower strike as currently car Vonna is trading at 57 87. Ah realizing about 84% Of the amount that we had put at risk for that 17 days left expiration. If we go ahead and take a look at the chat Correction. The chart There's the idea here now some traders since The short strike. Is at

around the $90 level. They may speculate that the price would remain below $90 for the next 72 correction. Next 70 17, But we can see, you know, there's been some strong countermoves on car Vonna in the past, and that can certainly happen. So from a standpoint of profit management , some traders may go ahead and consider closing out the position. Since I have realized a profit target now in those long verticals, we had discussed examples of around 50% of that maximum gain or 50% return on the amount at risk. Now, if we wanted to look at this on a day by day basis, we may keep an eye on this. Ah and see if there's a

bullish candle reversal looking for that CAHOLD-. And then possibly look to close that out, because as the price rises may decrease the possibility of the price rolling back over and again. Our example is to keep that well below 90, which is still significant above that price. Alright let's go ahead and back to the monitor tab. Ah! Another example. I did not talk

about this. Last week, I ran out of time and I should have and shame on me. Ah I believe it was about a little over a week or two weeks ago. It seems like

it's almost forever did an example of AHH of a neutral strategy on Netflix. We did an example of an iron condor where we expected Netflix to stay within a certain range. We also did an example of a double calendar where we expected the price to stay in a certain range , and I'm sure many of you realize how that story ended. Ah at least over the near term with Netflix as we go and bring that up. I believe our break even on this was somewhere at around 2 90 or 2 80. Netflix went ahead

and basically blew out of that Now, this is a great lesson on defined risk, because if you recall when we did those practice trades We were risking about $1000 each one and the max loss on those ended up coming into play as the prices broke out of that range. I was far as full disclosure. And showing you what happens if one does not.

Maintain that define risk. Let's say as an example in this is actually what I had done. Ah was actually went ahead and, uh, Closed out, on the put side. The long put And went ahead and, uh, locked into gains on that kept the short puts for potential if there was a bounce. Ah to

capitalize on that or be put the stock. You know, I do actually have a practice position to the tune of 400 shares on Netflix. Ah which, if I go ahead and go to the monitor tab So you go to account statement and look at the P N L. Ah maximum losses here on Netflix. This position

is down about 12,000, so that kind of exceeded The 2000 defined risk because we're maintaining a position on Netflix will be my break even on this as far as a counter move, if at least comes up to Ah, this candle here believe the break even on this is closer to around 2 27 to 28, Okay, um and looking at the size of the account. You can see the size. That account is significant from a plan from a standpoint of allocation. Ah that position and the impact on the account is relatively small believe Netflix represents about 5% of this practice account. All

right. So just one illustrate that. Since we ran out of time on last week to do that. Going

back to other positions. We also have Three m. And if we look at three am this is an example of a long put vertical. We're a target in to the downside to the 1 40. Let's take a look at that.

And zoom up. And we're looking for this example to actually start trading down. Where you can see that price actually turned back up. Now as we go ahead, and we look at the P and L for this one, This one's down about 38% of the amount that we put at risk. Now there's still a

defined risk trade believe we're risking about 1000. Ah dollars on this example. Maybe a little bit more than that. So it's off

by about $400 were down about 200 for the day now typically Um , we have not utilized stop losses for some of these long spread trades. We've defined our maximum loss by position, sizing that trade Ah, we have also set some profit targets and then focus on the time. But let's say for this example we got 17 days left. Price is bouncing, forming a higher low. Ah so there is potential for a bullish reversal here. Let's say I'm willing to be a little patient if the price rolls over, but not too much.

Let's say for this example again for illustrative purposes, and we can look at from a standpoint of, uh, outcomes in the future on how this plans out, Let's say Right up here around the 1 53 Mark. That would be a line in the sand. Now this spread can continue learn, losing some of that. But let's say we're

looking to possibly close it out if the price goes above a certain area. Well I can come here. Go to the Trade tab. And now, remember, this is not a stock. This is a spread. But let's say I want to close out this spread if the price goes above a certain level, Well, let's go ahead and right click on this. Create clothes in

order. And This is a long spread, so we'd be looking to sell that spread. Changes to a market order. And we'll make

that GTC. And so this is basically submitting a market order to close out this spread. Good til canceled Now you'll notice down here we have where it says market order must be have daytime and force. That's because there's no condition here. To close this out on a

good til canceled, So that's where we're going to go ahead and do we're going to get him come up here. We're going to click on knows Aguirre next to this area. So I'm going to click on the gear. This is going to allow us to go ahead and put in a condition and if we go down here under conditions There's a block for symbol we click on the block for symbol. There's three M We go to method That says Mark That's equivalent last price, and then we can do less than equal to or greater than equal to now, since this is a bearish trade, we're looking to possibly close it out if it goes above A certain threshold, and I think it's about 1 53. 53 47. I'll go

in. I'll double check that we'll click save. And if I go to confirm and send What it's saying here. It will go ahead and sell that spread at whatever the market prices keep in mind. We have no control of what that market price is. Yes Three M

goes at or above 1 53 47. Okay I'm gonna send this for right now. As an illustration, Okay? I go back to the charts. Ah I think I put a little bit below that 1 53 79 there. Um now, if one wanted to You could go to the trade tab. Under the option

position. Which I believe here is our position here. Think we're looking at the 1 40 the 1 47. If you want to see

potentially what the value of that option maybe going in to Ah , that price level. You can do it. It may take a little work, but we can come up to the top here. And go ahead and select! Vertical. To bring up a vertical spread and what it does, it will pair up. These options, But

remember, we have a wider spread. So what I would do is come up here to vertical. And look at deep and wide, and I believe we are separated, may not be able to do that, Uh, It's looking to do it separated by about seven strikes. Looks like we can only do for them there.

Um alright, that's a little bit of a conundrum. Yeah. Or what I could do is do this. Let's go ahead and do Ah, a single option. But come up here to where it says layout. And go to

where it says theoretical price. We'll click on theoretical price. And up here on the top here. We can go ahead and change the date. Let's go and reset

that to the current date. Um let's say we go out to Thursday , two days from now accounting for time decay. And let's say the stock goes up about five. So we do $5 ATBI 1 53 35. I think that's pretty close. Let's say

I'll just go ahead and do Goes up $5.50 That'll be about 1 53 84. So theoretically, if this happens two days from now, and the price hits that level, you can take a look at the value of the options. On the Theo price

to see how much they would be worth, and we had the 1 40. That would be worth 40 cents. And that's a short option. So we'd

have to buy back that 40 cents. And here is the 1 47 with the theoretical value of 1 44, so we'd be able to go ahead and sell that one. So that would basically be a net credit of about a dollar in the context of this example trade, assuming that volatility stays the same That would be essentially getting back. $300 The rest would be a loss there. Okay so

We went ahead and we put that through. So just showing you an example. Ah utilizing conditional orders. We can do that with those spread's okay now, not as common that I've done in this class, but that's just one example of, uh, setting a stop going into an event. And seeing if the price does continue reversing Call it at a loss. Try to regain some of that premium there with 17 days left expiration. Let's go in. Take a

look at your chat here. So if we have any questions there like the thank James for helping out in the chat The next one. We're going to take a look at is on Abercrombie, which was a by stop that we did last week that triggered we'll talk about Ah, adjusting stops on that as well.

And looks like James doing a great job there. Some speculation as far as on the Fed tomorrow. Once again thanks for helping out, James. Let's go ahead and bring up on the thinker swim platform. Going

back to our monitor tab. And looking at Ah and F here. So this was an example of a stock position. 400 shares Ah,

triggered As the price went above 36 for trade price of 36 25. You can see it has backed off a little bit from that opening trade. If we go ahead to the account statement, we can go in the past and look at these previous trade. So just going back 1 20 here. You don't have

to go that far. But if I type in a and f you can see an example of the order history for that trade. And here was the order to go ahead and fill. Ah that and I think it may have to go back in or actually did go ahead and trigger. I just did. Ah! The exit orders for that. I'm trying to think when we had initially placed it. I think we had to

make an adjustment, but it went ahead and triggered When price hit 36 25. It attempted by it at 36-35 or better we had a little bit accounted for slippage and as far as on the filled order where you go to trade history, you can see it actually did fill pretty much at that trigger Price. 400 shares Now. Currently we have A O. C. 01 cancels other Where there is an initial stop of $33.97. And I believe we had set a target upwards of around the 42 area, looking at some of those swing high, So if you come back and look at this for a and F. You can see there's the setup. We had talked about that

swing. Last week. You know, looking at a previous move as a price pulled back in a flag looking for a similar move. Ah if price action doesn't quite make that high Were that full target consideration as far as profit management if the price takes out that previous swing high to consider adjusting that stopped Okay. Now, as we zoom in, we can see on the chart where that current stop is And as we zoom even closer, you can see where the price had triggered an entry. I believe. Ah well, actually Believe it triggered today. Ah because we did not go above. Let's just

double check on that. I thought it triggered yesterday, but looks like it triggered this morning should have double checked the date. Uh yeah, Today is five thirds. So it basically triggered this morning as intra price did touch and go above that 36 25 Now it did back off a little bit. This points towards

some of the pros and cons of Ah entry day entries. You know if the price went up about 5% today, no one would be complaining, capturing that momentum. Sometimes that price may back off of that. Alright

And as we've seen here today, but yet still Staying above that previous low range. Now. One way again is if we wanted to adjust to stop. Consider wants to price takes that previous high, You know, we may manually adjusted and move it up towards closer to a break. Even Um, another consideration. Is to possibly

set a trailing stop. Ah Now one. When do you set a trailing stop . Now that's a personal consideration. Some traders may wish to be a little patient and allow the price to make some type of move. Before considering adding that trailing stop, for instance, and one example is if it takes out this high this previous high, possibly institute a trail and stop. We want to give back a little bit. To see if the price continues rising. To that full target.

Likewise if he gets close to it target, some traders may remove that trade the limit order and put in a trail and stop willing to surrender some gains if the price continues going higher. So with that if we were to go ahead and Right click. I can right click on the existing stop. And I can do cancel and replace order now by hitting, canceling their place order, it's going to bring up the original stop. If I wanted to change this to a trailing stop. We can click on that drop. And then select trail

stop. We can leave the GTC in there. And then notice. Part of me. I had a dry cough there. Hopefully I muted that fine. Um But notice right now it defaults to a dollar amount. Now, if I

wanted to trail this by a certain dollar amount, you know, let's say as an example of a dollar. You know, we can go ahead and do that. Ah another way of kind of quantifying that dollar amount. Is maybe bringing up an indicator We'll go to studies. Edit studies. And bring

up a tr for average True range average. True range, basically, uh measures the average trading range of that stock on a period of period basis in this case, a daily chart looking back 14 days. Well again. We'll apply that. The current at ER is shown as a dollar 57. Some traders may go ahead and take that number or a multiple of that, uh, in consideration. There some examples I've talked about in the past. Kind of like a

relatively short term trade. Maybe 1 80 are too you know a fraction of that, like 1.5, someone that may be more of a trend trader. You know, maybe looking at an A tr that's larger, maybe, like 2 to 3 times that average true range, basically considering said, and stops that are outside of that normal trading range, Okay? Um if I just did, like one, then that would be a dollar 57 so we can come back here on that order , and we can change that. And we can adjust that on a day to day basis If we see the A tr change. Right now it be trailing it by a buck 57, okay? Now 11 or two.

You can click on the plus minus. Ah there is kind of a step tear as far as points. Ah there's also as far as percentages if you want to trail by a certain percentage Right now it's showing 2% if I want to set a 3% trailing stop, we can go ahead and do that as well. Okay um, so in this example that you know if I was doing it kind of by default based off the A tr One point again, I think I said 5-7 , That's percentage. Let's go

back, change it to price Plus minus. There we go. I can hit the confirm Incent. And it tells you what you're doing, which is a trailing stop trailing the price by Buck 57 if the price retraces a buck 57 from whatever the current prices, it would close out the trade keeping in mind, it is still a market order. So it would fill at the next available price, Okay? Let's go ahead and double check.

Make sure we don't have any questions there. And I think we're still tracking. Okay there , James. Let me know if there's anything that I am missing. So you know, we've talked about Some examples on adjusting stops based off of prices hitting a certain level. Ah that could be again a previous high in the swing. We also looked at it from

a standpoint of if a trade maybe going against it, Okay. What's the line in the sand? We did. That example with three amp Now the third point here is utilizing studies for possible access. Now we did do that. Ah

in essence, with trailing stop that we put in a dollar amount that was referencing an indicator. Well, what if you want to go ahead and utilize and indicator itself to go ahead and have a exit? And in this case kind of simulate a trailing stop . Now things could be a little more complicated with that, But let's go ahead and review. So I'm going to come up here. Two indicators that we have utilized for trailing stops in the past.

One is a T R. And if I go ahead and go to studies And let's say we do edit studies. We'll go ahead and look for a tr trailing stop. It's actually close to the top. If you're not familiar with some of the indicators, folks go ahead and consider clicking the Question Mark. And will

basically tell you what that trailing stop is plots the trailing stop value calculation depends on the specified trail type. There's different ways of doing it. If you continue down, you can click on more details and go to the learning Center on think or swim, which is a great and underutilized tool to learn more about some of these indicators and to think of swim platform in general. If I go ahead and double click to add that You'll notice here, it says. ATRUM trailing stop

Modified five period 3.5 times, and it's showing a long Position that's for back testing. We're not going to talk about that Text back Test and here. Ah, but for this example Now we were looking at a 14 period. 80 are so if we want to get that reflective of 14 period, we can do that There's no right or wrong on that period there. But

as we you know, five period being much more shorter period focused on the most recent 14 would be a little smoothed out if I go to the ATRUM factor again change that 2-1. Okay and then go ahead and click OK? Help you go ahead and apply this and click. OK you'll see the plots for that 80 are okay now. The

thing here, though, is Based off of that value of the ER. At least for a 14 period. The price has not actually broken out of that if the price was to be breaking higher than the 80 Arwa will appear below. So based off of this period, I wouldn't even be able to add a trailing stop until price actually breaks higher. In essence, one of the considerations is not to institute a trailing stop until there has been a significant move indicators can be kind of a way of backing that up. Now I do believe when I was looking at this previously, if I right click on the indicator. Edits

study. 80 are trailing, stop and changes to a five period which against focus on more of the recency. I believe actually did not on this example. Ah did not break higher as well. Okay, so

At this point, uh, we can't actually put an 80 are trailing stop indicator at this point until the price moves higher Now, if it does, and this a tr appears below. What we can do is we can go ahead and come up to The trade tab. Go back to that order for and F Ah, on the stop side here. Right click. Canceling her place order. And if I come here to the gear Is going to go ahead and bring up The Conditional order now, before I do that! If I'm gonna utilize a study For a trailing stop. We actually want to change

this to a market. GTC Since now , we're not going to tie it to the underlying price per se. Here We're going to tie it to a study so we have market GTC. We

click on the gear. You know, bring that up. And now similar to what we did with three M. You

come down here to the conditions. Underlying symbol. We go to method and then we're going to select study. And this is where we can go ahead and have a study tied to that stock . Now when we click on that, by default, it's going to bring up a study order condition looks a little complicated. Ah, and by default, it actually may bring up another indicator such as moving averages. One can use moving averages to trigger an entry or an exit. I'm gonna go

ahead and delete that one. And upon deleting it. Now we're free and clear here. I'm going to click on add condition. And then here. Is where we can basically click on the drop down. And take

a look at something such as, uh, price. And we can use clothes for this illustration, which would basically illustrate, um the current price. And say that if that price is Less than or equal to, or you can just say less than And then go to the indicator we're looking for in this case study. Eight Er should

be. Ah, eight iar. Trailing Stop knows I start typing it. It comes up. And then here, you can go ahead and put in the period of time now whether it's a five period or 14 period, and we were utilizing a one. And I'll click save. And click, OK? And then notice here, it says, if the studies true It should go ahead and trigger that order. Now, if

I do it, confirm and send here It says if the clothes is less than the 80 are trailing, stop by that factor is true. It will go ahead and close this order at the market. Now the question is , is this condition true? Right now. As I showed you the chart it had the trailing stop here. The price was currently below that. So if one was to do a confirm and send here, Do you think there's probably a pretty good probability of that trade being closed out? The answer would be yes and therefore again on when the institute that is when prices made a favorable movement and we start seeing that a tr trail. Below that,

Okay, That could be a possibly good indication of that. All right now, if we go ahead and take a look at. Let's see what else we have here. Another way of doing this type of order, as we've talked about in this class is utilizing a parabolic SAR parabolic stop and reverse, maybe a little more dynamic when it's viewed on the chart compared to the 80 are If you come back here, and I'm not going to confirm Incent, I'm just delete this and leave the existing stop loss in their nose. When we look at the A tr Trailing. It seems to be a little rigid. There It has a

tendency of kind of stair step in so to speak, as it may follow the price. Okay Ah, if I come here and add the parabolic SAR, which I happen to have as a style, so we can do that here. The parabolic SAR is meant to basically follow some of these different swings knows if the price is swinging up. The

parabolic SAR follows above below it. If it retraces or pulls back, you'll see that parabolic SAR being above it, and it has a tendency of Ah, you know, kind of lining up with some of these price patterns as well. Now notice here with the parabolic SAR. It's a little more sensitive Parabolic Sar actually is currently trailing. Below the current price after we had that CAHOLD-- yesterday. So

if we wanted to institute a trailing stop based off the parabolic SAR, it is currently running underneath the price. In fact, in this example looks like it's pretty close to that. Ah 55 day moving average. Now the settings for this indicator as I'm going to go ahead and go to the Beaker here. If you want to

add the indicator yourself and bring up parabolic SAR, just start typing it in. Again You can click on the question mark to learn more about that indicator. If you double click the default settings. Are right here. Whoops Let's try another one here. Trying to manipulate

my drawing tools here. Australia one more time. We go ahead and look at the. Settings. It says 0.2 and point to where, as a settings I did are actually appoint 1.3. I made these a

little more sensitive. Two more of the swing price action. So if you add the indicator, this would be the setting. Now if I wanted to go ahead and add a trail and stop based off of this setting I'll go ahead and come back here after we have the indicator already applied. And

it's coming up. I'm gonna go back to that order. We had That stop order. I'm gonna right Click, cancel and replace We're going to make it a market GTC since we are using an indicator We go to the gear. Bring that

up. And do similar to what we did when we were considering the 80 R and F go to method will select the study. And do edit. From there up at the top. We

make sure there's no conditions. We remove that. We add the condition. And basically, we're

looking for price. Will do the clothes. Is less than And then we go ahead. We put in the

indicator in this case, the study And we're looking for parabolic SAR. Double click on that, it's added. Now make note . Here's the parameters, which are the defaults. For our example we're looking at a 0.1. And a 0.3 that basically makes

that trail on the parabolic a little bit tighter and happening within the current bar. We click save. Okay? And then save again. And then from here we do our confirm and send And it says in the confirm and send if the clothes is less than the parabolic SAR. Is true. It's currently not Ah, if when it's true, it will trigger a market order to sell that stock. So I'm gonna send this one through. It

canceled the previous order, And now I have a work in order. That is basically tied. To this parabolic SAR now, actually, now that I'm looking at it, uh, looks like based off the price action did adjust here, so possibly going into the next period. As soon as the opening

tomorrow it may go ahead and close out that trade. We're going to see how that plays out there. I just noticed that appear on their, um so we'll see how that plays out for the next period there. All right. So this is what we said. We were going

to cover here today, folks. Hopefully you learn something new. As we reviewed some of the current market conditions going into the Fed. We talked about

adjusting positions utilizing stops, and we've done several examples, both based off of the exchange. Ah on utilizing traditional stops, as well as utilizing conditional orders on the think or swim platform. Based off the underlying stock, as well as utilizing some of the different indicators as well. If you enjoyed what you learned here today, folks consider clicking like and remember in order to demonstrate the function out of the platform, we did have to use actual symbols. Keeping in mind. Tdameritrade

does not make recommendations or determine suitability of any security or strategy for individual traders. Any investment decision you make in your self directed account. Is solely your responsibility. Okay So thanks for joining us here today, folks do appreciate it. And yeah, it looks like on a final note. Someone said that I may have had the wrong setting on here. So let's go to

steadies. Edits studies and, yes, it was a double down. So we do get a gold star. Yes it is still true that we are above that price. So the gold star goes to Ah, Charles there. Thank

you, Charles so much. So have a great day, folks looking forward to talking with you again real soon. Bye now.

2022-05-06 15:06

Show Video

Other news