Hi guys,
I am posting this post to share ideas about the best indicators/strategies to use to exit from a long position on timeframe 10m is relevant.
At the moment i use the MA crossing strategy + trailing stop but I feel like i am leaving to much money on the table.
thanks in advance for your comments and posts
The core problem is that MA crossings are lagging by nature, they confirm the reversal well after the top. Here are the main alternatives and complements worth exploring on a 10-minute timeframe.
Momentum-based exits, these react faster than MAs :
- RSI reaching an overbought threshold (70, or even 80 in strong trends) and then turning back down
- MACD histogram flipping from positive to negative
- Stochastic crossing back below 80 after being overbought
Volatility-based exits, these adapt to market conditions :
- ATR trailing stop : instead of a fixed trailing stop, you set the stop at N x ATR below the highest high reached since entry. This breathes with the market and avoids getting stopped out on normal noise while still locking in profits during real reversals
- Parabolic SAR is essentially built for this use case on trending instruments
Structure-based exits, these are closer to pure price action :
- Exit when price closes below a significant swing low on the 10-minute chart
- Exit on a break of a rising trendline connecting the lows since entry
- Exit when price fails to make a new high (higher high) after a pullback, signaling momentum exhaustion
Hybrid approaches that tend to perform well :
- Keep your trailing stop as a hard safety net, but add an early partial exit (say 50% of the position) when RSI crosses back below 70 or the MACD histogram peaks and turns. This way you capture a good chunk of the move near the top while letting the rest ride with the trailing stop
- Use a higher timeframe (e.g. 1h or 4h) MA or support/resistance level as your primary exit target, and manage the 10-minute noise with the trailing stop in between
The partial exit idea is arguably the most practical improvement over a pure MA crossing exit. It directly solves the “leaving money on the table” feeling because you are no longer dependent on a single exit signal — you scale out progressively as the trade matures.
Below some good indicators found in our indicators scripts library:
ATR-based trailing stops
Another ATR Trailing Stop
United Volume ATR Trailing Stop
SwingARM ATR Trailing Stop
Price structure trailing stop :
Williams’ 3 bar trailing stop
Trend quality / slope :
Moving Average Slope
Volatility regime :
Double ATR trend indicator
TTI ATR Extreme
…try exit “end of the day”, means like 10min before the underlying real market closes for the day.
Also, exit after X bars (if in profit or not).