Mastering the art of setting precise take profit (TP) and stop loss (SL) levels is crucial for disciplined trading. This guide explores step-by-step methods to mark these critical levels on TradingView charts while optimizing your risk management strategy.
Step-by-Step: Marking TP/SL on TradingView Charts
Step 1: Access Forecasting Tools
Click the 4th icon from the top in the left-hand trading panel ("Forecasting and measurement tools"). This reveals a dropdown menu for position marking.
Step 2: Select Position Type
Choose either:
- "Long position" for buy orders
- "Short position" for sell orders
Step 3: Plot Your Levels
Click on the chart to place a rectangular marker (green = TP, red = SL). Use the crosshair tool to manually adjust positions by dragging the markers.
Step 4: Fine-Tune Markers
Double-click "Stop," "Closed," or "Target" labels to edit values numerically for precision.
Step 5: Execute Orders
Convert your markers into limit orders through your connected brokerage interface.
Step 6: Monitor and Adapt
👉 Track real-time price movements and adjust levels if market conditions change significantly.
Key Factors for Optimal TP/SL Placement
| Factor | Implementation | Tool Recommendation |
|---|---|---|
| Volatility | Wider SL/TP for high volatility | Average True Range (ATR) Indicator |
| Market Trend | Align with support/resistance | Fibonacci Retracement |
| Strategy Type | Tight levels for scalping | 15-min candlestick charts |
| Risk Appetite | Max 2% capital per trade | Position size calculator |
Advanced Techniques for Professional Traders
1. Dynamic Level Adjustment
- Trailing Stop Loss: Automatically moves SL to lock profits as price moves favorably
- Breakeven Stop: Adjust SL to entry price after hitting initial profit targets
2. Multi-Tier Profit Taking
- Close partial positions at different TP levels (e.g., 50% at R1, 50% at R2)
- Use horizontal line tool to mark secondary targets
3. Algorithmic Integration
👉 Automate your strategy with TradingView's Pine Script to trigger TP/SL based on technical conditions like:
- Moving average crossovers
- Bollinger Band breakouts
FAQ: TP/SL Management on TradingView
Q: Can I modify TP/SL after order placement?
A: Yes, through your broker interface. Most platforms allow edits until execution.
Q: How close should SL be to entry?
A: Minimum 1.5x the current ATR value to avoid stop hunting.
Q: Best alert method for TP/SL?
A: Set "Price Crossing" alerts with webhook notifications for instant updates.
Q: Should TP always be bigger than SL?
A: Not necessarily. The risk-reward ratio (e.g., 1:2) matters more than absolute distances.
Prohibited Adjustments (Avoid These Mistakes)
Emotional Tweaking
- Never move SL further away after losses
- Don't reduce TP prematurely due to fear
Ignarding Volatility Shifts
- Update levels during earnings announcements or FOMC meetings
- Recalculate ATR values daily for volatile assets
Overcomplicating Strategies
- Stick to 2-3 confirmation indicators maximum
- Avoid setting more than 3 TP levels per trade
Remember: Consistent application of your TP/SL strategy overrides short-term market noise. For enhanced charting capabilities, explore advanced features 👉 here.