Trailing Stops for Trade Management on Ninja Trader 7 and Divergence Trading

Trailing Stops & Trigger Lines

o As a new trader these trailing stops make all perfect sense….as the trade moves, the stop moves with it to lock in profit and lock OUT the risk

o The idea is simple, but the execution of a trailing stop is very tough to use effectively.

o The only time a trailing stop works is when you DON’T NEED ONE.

o I will use a combination of our trigger lines and the support and resistance nearby. (swing highs and swing lows)

o When the trade first gets going, use this rule:

o 13range trade = use the 21range trigger line

o 21range trade = use the 34range trigger line

o Once the trade takes off and if we have a BIG MOVE use the 13range trigger line and a recent swing high/low as your guide.

o I don’t place the stop at the specific trigger line, I place 5 ticks above or below, depending on which direction im trading.

Divergence Indicator & Method:

· Watch the Advanced course video, and don’t forget the NOTES

· You can also watch more vids on the blog

· Slower timeframes are used as a guide. If we get divergence SHORT on the DAILY Chart, im looking for SHORTS on the Hourly and Minute charts

· If we get LONG divergence on the DAILY then we are looking for long trades only on the faster timeframes.

· I CAN also use divergence for market sentiment. ‘Lets take profit NOW b/c we see divergence’