Glossary
What is Trailing stop
A stop moved along behind price — only in the direction of profit. Moving the stop away from price is not trailing, it is adding risk.
How it works
Example
Long from 62,960, stop 62,590. Trail the stop under the 62,957 pullback low after the push to 63,185 — and at 02:15 price dipped to 62,820: stopped out, while the 63,850 target was hit later.
Common mistake
Trailing every candle on a lower timeframe: the stop sits in noise and gets hit before the target.
Read next
Related terms
Frequently asked questions
- Where can I learn Trailing stop step by step?
- In the Trading OS Academy: “Don't move the stop out of pain”.
- What is Trailing stop related to?
- Stop-loss; Breakeven; Partial close.
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