Trailing Stop
A stop that automatically follows price by a set distance or percent, locking in gains as a trade moves in your favor.
A trailing stop is set a fixed amount or percentage away from price and ratchets along as price advances, but never moves backward. In a rising stock it trails up beneath, protecting more profit as the move extends, and triggers only when price pulls back by the trailing distance. It automates the 'let winners run, cut them when they turn' discipline.
The art is the distance: too tight and normal noise stops you out early; too wide and you give back a lot before exiting. Anchoring the trail to volatility (an ATR multiple) or to structure (below each higher low) beats a fixed percent for most names.
On StockSetups
Trend tools on StockSetups — the ATR-based Chandelier and Supertrend levels and each signal's structure — give natural places to trail a stop as a setup works, rather than a single fixed exit.
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