dRisk Analytics
  • 1. What is dRisk Analytics?
  • 2(a). Introducing Compass
  • 2(b). Immediate Entry - Begginer Strategy
  • 2(c). TrendX Entry Strategy for Compass - Intermediate Strategy
  • 2(d). Crossbow Entry Strategy for Compass - Intermediate Strategy
  • 2(c). Delta Entry Strategy for Compass - Intermediate Strategy
  • 2(d). Fibonacci Entry Strategy for Compass - Advanced Strategy
  • ----------------------------------------
    • 3(a). Introducing TrendX
    • 3(b). TrendX - Mean Reversion Strategy
    • 3(c). How to Use TrendX - Take Profit Identifier
    • 3(d). How to Use TrendX - Knowing when NOT to enter a trade
  • ----------------------------------------
    • 4(a). Introducing Iron Dome
    • 4(b). Iron Dome - Entry Strategy
    • 4(c). Iron Dome - TrendX Entry Strategy
  • ----------------------------------------
    • 5(a). Introducing Delta
    • 5(b). Using Delta to Find Entries
    • 5(c). Using Delta in Confluence With Compass
    • 5(d). Using Delta - Take-Profit Placement
    • 5(e). Using Delta to Set Stop-Loss
    • 5(f). Our Favorite Entry
  • ---------------------------------------
    • 6(a). Introducing Crossbow
    • 6(b). Crossbow Entry Strategy for Compass - Intermediate Strategy
    • 6(c).
  • FAQ -----------------------------
    • Why choose dRisk Analytics?
    • What Does Data -Driven Results Mean?
    • What Pairs Can I Trade?
    • What Is TradingView?
    • How to set up a TradingView Account?
    • How to Setup dRisk on TradingView?
    • How To Open Your TradingView Chart?
    • How to Add an Indicator To Your Charts?
    • How to Change Chart Time Frame?
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5(e). Using Delta to Set Stop-Loss

Using Delta to Set Optimal Stop-Loss

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Last updated 1 year ago

Delta proves to be a potent tool for setting Stop Loss, much like its effectiveness in Take Profit decisions. Its strength lies in identifying crucial levels of buy and sell pressure, which is essential for traders to identify on the charts. These pivotal zones of heightened sensitivity serve as ideal locations for placing your Stop Loss, offering traders a shield against adverse buy or sell movements. Think of it as erecting a fence around your property—though not impervious, it serves to make unauthorized entry more challenging.

Speaking of buy and sell protection, positioning your SL beneath the Delta zone firmly anchors it beneath a clearly defined level of significant buy support, as unmistakably indicated by Delta. The image below illustrates a proper LONG ENTRY, where the SL is effectively anchored below Delta, as demonstrated.

The image below demonstrates that even when sellers exerted strong downward pressure to breach Delta, our Stop Loss (SL) remained protected, as anticipated, thanks to Delta's identification of this critical level of sensitivity and buy support.

Leveraging Delta for Stop Loss (SL) placement is a wise choice whenever feasible. The added layer of protection it provides can often determine the outcome between a successful and unsuccessful trades. The team at dRisk loves Delta, and SL protection is just one of the many reasons why.

Example 1(a)
Example 1(b)