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There are many different types of trailing stop indicators out there including a basic % trailing stop, and one's based on the ATR and chandelier methods. In this blog post, we're going to go over a new type of trailing stop indicator called the 3D Trailing Stop™️ which uses a variety of trend, volatility and volume data to show the optimal level to exit a trend.
If you're a trader, you know that one of the most important aspects of trading is knowing when to exit a trade. It's easy to get caught up in the excitement of a winning trade, but it's equally important to know when to cut your losses and move on. This is where trailing stop loss indicators come in handy.
There are many types of trailing stop loss indicators available on TradingView, but the 3D Trailing Stop stands out as a new and innovative tool that can take your trading to the next level. This indicator uses a variety of trend, volatility, and volume data to determine the optimal level to exit a trade.
Similar to the ATR and chandelier trailing stops, the 3D Trailing Stop is a dynamic tool that adjusts to market conditions, making it more effective than traditional static stop loss orders. But what sets the 3D Trailing Stop apart is its ability to consider multiple factors and provide a more accurate and reliable exit signal. Whether you're a seasoned trader or just starting out, this is a tool you won't want to miss.
How does the 3D Trailing Stop Indicator work?
If you're interested in using the 3D Trailing Stop indicator in your trading strategy, it's important to understand how it works. The indicator is designed to be a trend-following tool, which means that it can help you identify and stay in trends for as long as possible.
The first thing to know is that the 3D Trailing Stop can be used for both long and short trades. If you're long an asset, the indicator will display a line underneath the price that represents the trailing stop level. If you're short, the indicator will display a line above the price. You can adjust the settings to display either a long or short trailing stop, depending on your strategy.
The 3D Trailing Stop takes into account a variety of factors to determine the optimal exit point for a trend trade. These factors include the current and past volatility of the asset, as well as volume patterns. By analyzing these factors, the indicator can provide a more accurate and reliable exit signal than other trailing stop indicators.
When you're using the 3D Trailing Stop, you'll want to look for price to close below the trailing stop line for long trades or above the line for short trades. This signals that the trend is potentially reversing and it may be time to exit your position.
One of the benefits of the 3D Trailing Stop is that it can be used on any asset from around the world and any timeframe. This makes it a versatile tool for traders of all experience levels.
Below is an example of the indicator showing when to exit a trade in Tesla ($TSLA) on the daily chart. You can use the indicator two ways, one when price crosses below the blue line or when price closes below the blue line as shown below, waiting for a close below the line will keep you from getting whipsawed out of good trends by keeping you in the trade for longer.
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To make the most of the 3D Trailing Stop, you can set up real-time alerts in the TradingView platform to notify you when the indicator triggers an entry or exit signal based on your settings. This can help you stay on top of your trades and make informed decisions in real time.
The 3D Trailing Stop is a powerful tool that can help you optimize your trading strategy by providing more accurate and reliable exit signals. By understanding how the indicator works and using it in combination with other technical analysis tools, you can stay ahead of the markets and maximize your profits.
Academic Research into the use of Trailing Stops
Academic research has shown that using trailing stops can be an effective tool for managing risk in trading. In a study published in the Journal of Financial Planning, researchers found that using a trailing stop loss strategy resulted in higher returns and lower drawdowns compared to traditional static stop loss orders.
Another study published in the International Journal of Economics and Finance found that using a trailing stop loss strategy was more effective in reducing risk and increasing returns than other stop loss methods, including fixed stop losses and moving averages.
The use of trailing stops has also been studied in the context of specific markets, such as the stock market. In a study published in the Journal of Financial Markets, researchers found that using a trailing stop strategy resulted in higher profits and lower risk in the stock market.
Overall academic research supports the use of trailing stops as a risk management tool in trading. By using a dynamic stop loss strategy like the 3D Trailing Stop, traders can potentially improve their trading performance and achieve better risk-adjusted returns.
Examples of 3D Trailing Stop Indicator
Some examples are shown below of the indicator being used on different assets across multiple timeframes showing that it can work in any market and time as all markets display trending characteristics. The yellow line indicators on the chart where price closed below the blue line and may be a good time to exit the trade.
Snowflake ($SNOW) Daily Chart
Cloud Computing ETF ($SKYY) Weekly Chart
EURUSD 5 Minute Chart
Bitcoin 5 Minute Chart
How to Setup Real Time Trading Alerts
You can conveniently receive real-time trading alerts using TradingView whenever the 3D Trailing Stop indicator generates a buy, sell, or exit signal, thereby eliminating the need to monitor the charts all day long.
To set up alerts in TradingView for the 3D Trailing Stop indicator, follow these simple steps:
Log in to your TradingView account and navigate to the chart you wish to set up alerts for.
Add the 3D Trailing Stop indicator to the chart by clicking on the "Indicators" button at the top of the chart, searching for "3D Trailing Stop", and selecting it from the list of available indicators.
After adding the 3D Trailing Stop indicator to the chart, click on the "Alerts" button located at the top of the chart.
Click on "Create Alert" and choose "3D Trailing Stop" as the condition.
Select the asset and desired timeframe for which you want to receive alerts.
Choose the type of alert you prefer to receive (such as email, popup, SMS) and provide the necessary details.
Set the trigger conditions for the alert, such as "Crosses below" for a long position or "Crosses above" for a short position.
Click "Create" to save your alert.
Once you have set up your alert, you will receive notifications whenever the 3D Trailing Stop indicator issues a trading signal based on the conditions you specified.
This feature can help you keep a close eye on your trades and take prompt action when required, without the need to constantly monitor the charts.
How to Start Using 3D Trailing Stop™️
Looking to simplify your trading strategy and increase your chances of winning trades? Look no further than 3D Trailing Stop, an exclusive trading indicator available for purchase in our store.
With its innovative blend of trend, volatility, and volume analysis, 3D Trailing Stop is a powerful tool for trend trading and optimizing your exit strategy. And with its user-friendly setup process, you can start using it in your TradingView account in just a few minutes.
Head over to our TradingView Indicator Store and make your purchase today to start trading with greater confidence and success, and take advantage of the powerful signals provided by 3D Trailing Stop.
Visit our indicator store page and start using the 3D Trailing Stop indicator today!