Risk Management Techniques for Trading - Optimal stop loss level- No 2 technique

 Here is the article. 

There are many different approaches that traders can utilize when deciding where to place a stop.

Traders can set stops in accordance with:

• Moving averages – set stops above (below) the specified MA for long (short) positions. The chart below shows how traders can use the moving average as a dynamic stop loss.

• Support and resistance – set stops below (above) support (resistance) for long (short) positions. The chart below shows the stop being placed below support in a ranging market, allowing the trade enough room to breathe while protecting against a large downward move.
• Using the Average True Range (ATR) - ATR measures the average pip/point movement in any security over a specified period and provides traders with a minimum distance away to set their stops. The chart below adopts a cautious approach to the ATR by setting the stop distance in accordance with the maximum ATR reading from recent price action.

*Advanced Tip: Instead of using a normal stop loss, traders can use a trailing stop to mitigate risk when the market is moving in your favor. The trailing stop, as the name suggests, moves the stop loss up on winning positions while maintaining the stop distance, at all times.