Abbreviation: PriceFloorPnts
Category: Trading Strategy: Protective Stops
Input Parameters:
| Name | Range | Default |
| Trading Strategy | ||
| Points Below Entry Price | Real >= 0 | 5 |
Calculation:
For a long position,
= Entry Price – Points Below Entry Price
For a short position,
= Entry Price + Points Below Entry Price
Discussion:
This indicator is useful for creating a trading strategy protective stop at a specified number of price points below the entry price.
Example:
If your entry price is 100 and your Points Below Entry Price is 10 then:
for a long position, a stop is placed at 90 (10 points below the entry price). The stop order will be activated once the price drops down to 90, at which point you will exit your long position.
for a short position, a stop is placed at 110 (10 points above the entry price). The stop order will be activated once the price rises to 110, at which point you will exit your short position.