It’s a simple method developed by Dex for updating stop losses on active trades. Your P.O.P. (Pulse Out Price) is the price you use to update Stop Loss orders to help you lock in profits.
How do you do this?
Here are the indicators you need to have on your charts in order to use The POP Method. (See the video “Fast Track, Part 3” for how to set up your charts)
Parabolic SAR: Add it to your charts and leave the settings as is. Change size and color so you can see it clearly.
Moving Average Exponential: In the settings, change the “Length” to 5 and the “Source” to hl2.
There are 8 options you can use to choose your stop on a continuum from “stay in trade” to “lock in profit”. Choosing an option depends on your goal for your current trade.
The closer the POP option is to your current price, the more likely it is to close the trade and lock in profits or limit losses.
The further the POP option is to your current price, the more likely you are to stay in the trade.
☝️ When LONG: You will always move your stop up, closer to the current price.
👇 When SHORT: You will always move your stop down, closer to the current price.
When in doubt, taking profit is never wrong.