Trailing stop
Also called trail. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
Trailing stop: A trailing stop is moved in the direction of the trade as price advances, locking in more profit while letting the trade run.
Trailing stop on a gold chart
Short gold from $4,160, the stop is trailed above each new lower high on the 15-minute chart: $4,150, then $4,138, then $4,121, until price finally takes it out.
How traders use it
ICT traders trail behind swing points or fair value gaps rather than a fixed dollar distance.
Common mistake
Trailing so tightly on the 1-minute chart that normal pullbacks close the trade before the move happens.
Questions
What does trailing stop mean in trading?
A trailing stop is moved in the direction of the trade as price advances, locking in more profit while letting the trade run.
How is trailing stop used on gold (XAUUSD)?
ICT traders trail behind swing points or fair value gaps rather than a fixed dollar distance.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
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