#StopLossStrategies

Traders to limit potential losses in trading. There are several types of stop-loss strategies, including:

1. **Stop-Loss Based on Alignment**:

- Traders use support and resistance levels, moving averages, previous highs and lows, Fibonacci retracements, trend lines, and channels to determine stop-loss points.

- This method may be prone to short stops if the points used are too clear.

2. **Stop-Loss Based on Volatility**:

- This strategy adapts to changing market conditions. When volatility is high, a larger stop-loss is used to accommodate large market changes. When volatility is low, a smaller stop-loss is used.

- Indicators such as Average True Range (ATR) or Volatility Index (VIX) can be used to determine stop-loss levels based on volatility.