Trailing stop placement

I've always felt that the trailing stop is one of the most important tools for trading, I'm always working on ways to improve my placement.

I'm experimenting with placing the trailing stop at the point where the trend line intersects the current price bar. For example:

I'm short aud/usd, the price is 6920 and if I place my curser on the current price bar the trendline (down) is intersected @ 6927. I give 1 point to play with so my trailing stop is @ 6928.

My rational is that I will follow the trend until the price breaks the trend line and a change in trend is probable.


Welcome back SJ:-)

Thanks Joe, and as Shinken said, welcome back :-)