SSB stands for Stop-Start-Break, while SGS stands for Stop-Go-Stop. Both acronyms are used to indicate the trend of a security or market. SSB and SGS are valuable tools to help you determine the trend of a security or market. However, traders should not use them in isolation.
It is important to use other indicators such as RSI, MACD, and candlesticks to confirm the trend before entering into a trade. Professional traders choose to use both of these styles to have a mix of smaller, more frequent gains and larger, less frequent ones that take more extended periods.
How to use SSB?
When using SSB, you want to look for a security that is trending up and making higher highs and higher lows. You would then enter a long position when the security breaks above the previous high. If the security reverses direction, you will place a stop-loss order below the previous low to protect your investment.
How to use SGS?
When using SGS, you want to look for a security that is trending down and has been making lower highs and lower lows. You would then enter a short position when the security breaks below the previous low. If the security reverses direction, you will place a stop-loss order above the previous high to protect your investment.
Key differences between SGS and SSB?
SGS is executing trades quickly but only targeting a small profit. On the other hand, SSB is a longer-term strategy that can take many days before it executes a trade but makes significantly bigger profits because of the large time frame it works to.
SGS is executing trades quickly but only targeting a small profit. On the other hand, SSB is a longer-term strategy that can take many days before it executes a trade but makes significantly bigger profits because of the large time frame it works to.
SGS is a faster process that can lead to more significant returns in the short term, whereas SSB requires more patience as you wait for your security to appreciate its true worth before selling it. New traders need to understand the difference between these two trading styles and decide which one they would prefer, or if willing to put in enough time into both, that they become proficient at both.
The SGS indicator
The SGS indicator was invented by Tom Aspray back in 1988 while he built his track record on Wall Street; while working at Interactive Brokers, he used these techniques extensively to develop an automated trading system. He later published his work in what became known as The Bible of Technical Analysis. This book included information about all sorts of indicators used for trade identification and execution by professional traders.
The foundation behind the SGS indicator is that traders can use it to identify price levels that are likely to provide support or resistance in the future. This will play a key role in determining whether you should buy more of a stock or sell your position and take your profits.
The primary advantage of using such an indicator is that traders do not need to rely on fundamental factors such as earnings for their trading decisions; instead, they can focus all their attention on technical analysis.
Conclusion
It’s essential for beginners to learn about the differences between SGS and SSB and decide which one they would prefer to focus their trading on. Initially, the best advice would be for a beginner to start with a simpler strategy such as SGS trading until they gain experience and confidence before moving on to SSB. It is further recommended that new traders interested in the market for bonds and how to trade them should contact a reputable online broker from Saxo Bank and try out a demo account before investing their money.