Thinkorswim is a popular trading platform that allows traders to trade various financial instruments, including forex. The platform provides a wide range of tools and features for traders, including the ability to set stop loss and target levels. In this article, we will explain how to show a line for stop loss or target in Thinkorswim forex.
What is a Stop Loss?
A stop loss is an order placed by a trader to sell a currency pair when the price reaches a specific level. The purpose of a stop loss is to limit the trader’s losses if the trade goes against them. For example, if a trader buys EUR/USD at 1.1200 and sets a stop loss at 1.1100, the trade will be automatically closed if the price reaches 1.1100, limiting the trader’s loss to 100 pips.
What is a Target?
A target is an order placed by a trader to sell a currency pair when the price reaches a specific level. The purpose of a target is to take profits when the trade goes in the trader’s favor. For example, if a trader buys EUR/USD at 1.1200 and sets a target at 1.1300, the trade will be automatically closed if the price reaches 1.1300, locking in a profit of 100 pips.
How to Show a Line for Stop Loss or Target in Thinkorswim Forex
Step 1: Open a Chart
The first step is to open a chart for the currency pair you want to trade. To do this, click on the “Charts” tab in the Thinkorswim platform and select the currency pair from the dropdown menu.
Step 2: Add a Study
The next step is to add a study to the chart. Thinkorswim provides a wide range of studies, including the “Add Study” tool. To add a study, click on the “Studies” tab in the Thinkorswim platform and select the study you want to add.
Step 3: Set Parameters
Once you have added a study, you need to set the parameters for the study. For example, if you want to add a line for a stop loss, you need to set the stop loss level. To do this, click on the “Settings” icon next to the study and enter the stop loss level.
Step 4: Add the Line
The final step is to add the line to the chart. To do this, click on the “Drawings” tab in the Thinkorswim platform and select the “Horizontal Line” tool. Then, click on the chart where you want to add the line and drag it to the desired level.
Conclusion
Setting stop loss and target levels is an essential part of forex trading. Thinkorswim provides traders with the ability to set these levels and shows them on the chart with a line. By following the steps outlined in this article, you can add a line for stop loss or target in Thinkorswim forex and manage your trades effectively. Remember that stop loss and target levels should be set based on your risk tolerance and trading strategy.
