Stop Loss and Take Profit
Step-by-Step MT5 Example Based on a Real XAUUSD Sell Trade

This guide explains Stop Loss and Take Profit with one real example from an MT5 gold trade. The example uses XAUUSD on the M5 timeframe. We will follow the same trade from setup to full plan.

Original Example

This is the original trade screenshot. It shows an open sell trade on XAUUSD. The goal is to understand where the entry, resistance, stop loss, support, and take profit are placed.

Figure 1. Original MT5 trade screenshot

Trade Example at a Glance

·       Pair: XAUUSD (Gold)

·       Timeframe: M5

·       Order Type: Sell

·       Entry Price: 4463.22

·       Current Price: about 4450

·       Resistance: 4473.06

·       Stop Loss: 4475.00

·       Support / Take Profit: 4442.00

This is a sell trade. That means the trader expects price to move down. For a sell trade, Stop Loss is usually placed above resistance, and Take Profit is usually placed near support.

Step 1: Read the Trade Setup

First, read the basic trade information on the platform. In this example, the trader is selling XAUUSD on the M5 timeframe.

·       Timeframe: M5 — each candle shows 5 minutes of price action.

·       Order Type: Sell — the trader profits if price goes down.

·       Entry Price: 4463.22 — this is where the sell trade was opened.

·       Current Price: about 4450 — price is already below entry.

·       Take Profit: 4442.00 — the trade will close in profit if price drops to this level.

Step 1: Read the Trade Setup

Step 2: Find Resistance

Next, find resistance. Resistance is a price ceiling. For a sell trade, resistance is usually above the entry.

·       Resistance in this example: 4473.06.

·       Entry price is 4463.22, so resistance is above entry.

·       This level helps us decide where to place Stop Loss.

Step 2: Find Resistance

Step 3: Set Stop Loss

After finding resistance, set Stop Loss above it. This gives the trade some room but still controls risk.

·       Stop Loss in this example: 4475.00.

·       It is placed above resistance at 4473.06.

·       If price breaks above resistance and reaches 4475.00, the sell idea may be wrong.

·       This is why the Stop Loss protects the account from a bigger loss.

Step 3: Set Stop Loss

Step 4: Find Support

Now find support. Support is a price floor where price may stop falling and bounce.

·       Support / Target in this example: 4442.00.

·       For a sell trade, support helps us find a Take Profit target.

·       This is why the Take Profit is placed near support.

Step 4: Find Support

Step 5: Build the Full Trade Plan

Finally, put the whole setup together. A good trade plan clearly shows entry, stop loss, take profit, and the risk-reward relationship.

·       Entry: 4463.22

·       Stop Loss: 4475.00

·       Take Profit: 4442.00

·       Risk: about 12 points

·       Reward: about 21 points

·       Risk/Reward: about 1:1.8

Step 5: Build the Full Trade Plan

Why This Example Works for Beginners

·       It uses one real chart, so every level is easy to follow.

·       It shows the correct order of learning: setup → resistance → stop loss → support → take profit.

·       It makes the logic clear: sell near resistance, protect above resistance, and target support below.

Quick Summary

In this MT5 example, the trader opened a sell trade on XAUUSD at 4463.22. Resistance was around 4473.06, so the Stop Loss was placed a little above it at 4475.00. Support was around 4442.00, so the Take Profit was placed near that level. This creates a simple and practical trade plan for beginners.