Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
The Two Day Low Stop

The Two Day Low Stop

Richard Krivo, Trading Instructor

Student’s Question:When I hear about strategies for placing a stop, I have come across something called the “Two Day Low Stop”. Would you provide some insight on that?ThanksInstructor’s Response:Sure…Take a look at the chart below for a visual.

The_Two_Day_Low_Stop_body_32743d1246319720-post-day-chart-6-29-09.png, The Two Day Low Stop

In this example a long position was taken. On this Daily chart, the trader would count back two candles from the currently open candle and place the stop several pips below the lowest point to which that candle traded. When the currently open candle closes, the trader will then move one candle to the right and adjust the stop up accordingly. This process can continue until a profit target (limit) is hit or until price action retraces to the level of the advancing stop.

In the case of a short (sell) position, the stop would be placed above the high of candle two from the right of the open candle and the stop would be adjusted down as price action moves in that direction.While this strategy can be used in any market condition, it will function best in a trending market.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES