Where Should You place a Stop Loss Indices Order using Support Level and Resistance Levels in Indices Trading?

A trader can use support & resistance levels on the stock indices chart to determine where to place their stop loss stock indices orders using the techniques described on the example below:

Setting Stop Loss Indices Order using Resistance Areas

One way of setting stop loss stock indices orders is to use resistance levels, on the stock indices charts.

Given that stop loss orders tend to congregate at key points, when one of these resistance levels is touched by the indices trading price, other trading orders are set off.

Stop Loss orders tend to accumulate just above the resistance zones.

A resistance level should act like a barrier for stock indices trading price movement, this is why the resistance zone are used to set stoploss orders.

If this resistance level is broken the stock indices trading price movement can go toward the opposite direction of the original indices trend, but if this resistance level is not broken the stock indices trading price will continue heading in intended direction.

Stop Loss Indices Order Level Setting using Resistance Zones in Indices

Setting Stop Loss Indices Order above the Resistance Level

Setting Stop Loss Indices Order using Support Levels

Another way of setting stop loss stock indices orders is to use support levels, on the stock indices charts.

Given that stop loss orders tend to congregate at key points, when one of these support levels is touched by the indices trading price, other trading orders are set off.

Stop-loss orders tend to accumulate just below the support zones.

A support zone should act like a barrier for stock indices trading price movement, this is why these support levels are used to set stoplosses.

If this support level is broken the stock indices trading price movement can go toward the opposite direction of the original indices trend, but if this support level is not broken the stock indices trading price will continue heading in intended direction.

Stop Loss Indices Order Level Setting using Support Zones in Indices

Setting Stop Loss Indices Order below the Support Level