In the chart to the left were trading the NQ, we are long three contracts right at the red line and trend changes long. We hit our first two profit targets. We are trailing our stop on last contract to protect our gains on another successful trade. As the chart shows it can be used to trade long and shorts.
The calculation it makes moves with the overall trend and volatility of the market. Its far enough away not to get stopped on regular basis, but close enough to work with no second guessing.
You can use the trail stop also as an exit strategy. The Trailing Stop Indicator should be in every traders toolkit, as it will let your gains run and cut your losses with no second guessing on where to place your stop.