Above is the daily S&P-500 chart for 2013. The light blue channel is my own indicator called, "The Trend Channel", I use this indicator to identify stops so I can hold on during a trend and base my exit on real changes that suggest the trend is changing, there's no guessing, the channel adjusts to each stock's own personality and when the stock starts acting very different, price closes below the channel and it's a stop out.
I have found over the years that the channel will keep you in for 80% of the trade, but the most volatile 20%, 10% at the bottom and 10% at the top if you time it perfectly, is not worth chasing. Chasing this extra 20% typically sees you sitting in a stock that is going sideways and with massive volatility, it's much easier to take the 80% of "Easy Money" and move on.
In red is where the Channel would have stopped you out on the close, since then you would have nothing but headaches.