The P.O.P. Method

How to choose a Stop Loss price on active trades to lock in profit and limit losses.
 1. Set Up Your Charts: Easy & Advanced
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Supplemental: Setting up Think or Swim

What is the POP Method?

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?

  1. Review your PulseOut Price (P.O.P.) options.
  2. Choose which POP you want to use (tighter or looser).
  3. Update your stop loss order.

Set Up Your Charts

INDICATORS: 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)

  1. Parabolic SAR: Add it to your charts and leave the settings as is. Change size and color so you can see it clearly.

  2. Moving Average Exponential: In the settings, change the “Length” to 5 and the “Source” to hl2.

 2. The POP Method & Chart Basics

Options for choosing your P.O.P.

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.

  1. 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.

  2. The further the POP option is to your current price, the more likely you are to stay in the trade.

8 Options for Choosing your PulseOut Price

  1. 5ema on 1 hr current bar
  2. 5ema on 1 hr 1 bar back
  3. 5ema on 4 hr current bar
  4. 5ema on 4 hr 1 bar back
  5. SAR on 4 hr current bar
  6. SAR on 4 hr 1 bar back
  7. SAR on 1 hr current bar
  8. SAR on 1 hr 1 bar back
3. Three Things to Remember
  • First, Update your stop as often as the PulseOut Price shifts when new candles open on the 1hr or 4 hr charts.
  • Second, We always move stops CLOSER to the current price. Never further away. That is, we always update our stops to lock in more profits, never less.

☝️ 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.

  • Third, You will never go broke taking profit.

When in doubt, taking profit is never wrong.