A stop that is moved in the trade's favor as price progresses, for example below each new higher low.
How traders use it: Structure traders often trail behind confirmed swings rather than a fixed distance.
Common mistake: Trailing so tightly that normal pullbacks close the trade.
Related: Partial profits (scaling out) · Swing high / swing low · Breakeven stop
See this term in the full glossary · All terms
Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.