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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Biden administration delays revamp of Trump's blacklist for China investments -BBG $USDCNH $SHCOMP
  • $EURUSD breakout stalled (so far) around the same spot that caught the feb top fib from the same study that caught the low in march (at the 38.2)
  • The USD/CAD breakdown has stalled into lateral technical support at 1.2048/61 and the focus is on a reaction off this mark. Get your $USDCAD @MBForex here:
  • US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb -via @DailyFX Link to Full Analysis: $USD $DXY #Trading
  • AUD/USD attempts to retrace the decline following the update to the US Consumer Price Index (CPI) as it bounces back from the 50-Day SMA (0.7715). Get your $AUDUSD market update from @DavidJSong here:
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.64%, while traders in EUR/USD are at opposite extremes with 70.33%. See the summary chart below and full details and charts on DailyFX:
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.06% Gold: -0.03% Oil - US Crude: -1.48% View the performance of all markets via
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.54% 🇪🇺EUR: 0.45% 🇳🇿NZD: 0.41% 🇯🇵JPY: 0.23% 🇦🇺AUD: 0.22% 🇨🇦CAD: -0.05% View the performance of all markets via
  • Some really great insight and compelling chart setups below. Strongly encourage taking the time to read through my colleague @JStanleyFX's latest take on #StockMarket cycles.
  • Tesla, ARKK, Nasdaq 100 and S&P 500: Varying Stages of the Cycle $TSLA $ARKK $NDX $SPX In order from strongest to weakest: 1) SPX 2) NDX 3) TSLA 4) ARK the leaders have become the laggards...
Locking in Profit with a Two Day High or Low Trailing Stop

Locking in Profit with a Two Day High or Low Trailing Stop

Research, Research Team

Trailing stops come in a variety of forms…dynamic, fixed and manual. On FXCM’s Trading Station II, a dynamic trailing stop will move in the direction of the trade one-tenth of a pip each time the trade moves one-tenth of a pip. A fixed trailing stop can be set to trail the trade at a desired (fixed) amount… let’s say 50 pips. In this case each time the trade moves 50 pips in the direction of the trade, the stop will advance 50 pips.

Personally, I prefer to trail the stop manually. My reason for that is I base my stop placement on price action as it relates to support and resistance levels. This is opposed to simply picking a random number which may or may not coincide with how the currency pair is actually moving.

In addition to the above, the Two Day Trailing Stop generally (depending on market conditions) provides the added benefit of having the initial stop placed a good distance from the trade’s entry. Having the stop away from the entry allows the trade room to “mature” as price action may oscillate before moving back into the direction of the trend.

Here is how the Two Day High/Low Trailing stop would work on a chart…

Locking_in_Profit_with_a_Two_Day_High_or_Low_Trailing_Stop_body_Low.png, Locking in Profit with a Two Day High or Low Trailing Stop

Let’s say that we short this EURGBP pair on the Daily chart based on the Slow Stochastics crossover to the downside. The two candles in the box to the left of our entry candle represent our choices for the placement of our stop. In a short position, we could place our stop above either of the two wicks as that would represent the two day high. In this case the stop would be placed above the wick where we see the black line.

As we move to the next trading day, our box will move forward one daily candle. As we can see on the chart below, the two day high remains the same so our stop would not be moved.

Locking_in_Profit_with_a_Two_Day_High_or_Low_Trailing_Stop_body_Low_1.png, Locking in Profit with a Two Day High or Low Trailing Stop

On the next chart as we move on to the next trading day, the box moves forward one more daily candle…see below.

Locking_in_Profit_with_a_Two_Day_High_or_Low_Trailing_Stop_body_Low_2.png, Locking in Profit with a Two Day High or Low Trailing Stop

In this instance we see that now the two day high is represented by a different candle with a lower high so our stop would be moved down. We would continue this process until a price target (limit) is hit or until price action ultimately moves up and triggers our two day high stop and takes us out of the trade.

If we were buying a currency pair instead of selling the process would be reversed. As the days progressed and if price action moved up, we would move our stop up based on the progression of the two day low.

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.