Is
a way to go....and a pretty good unambiguous way. I'd not go as far as saying its
the way
Let me introduce another (particularly fine imo) possibility is market geometry - for example if you are buying an up sloping trend channel you would stop on a close below the the main up sloping trend line(1-3 line). The beauty of this is that it provides a handy target too (2-4 line). This is still market generated (as it uses two successive swing lows)
and projected (as its a sloping line drawn through these).
As an aside I would highly recommend Tim Morges (no affliation) commentaries on his stop placement and movement (hes over at medianline.com) I find them absolutely fascinating I'm not sure if the archives are still available but worth seeking out. I have them all printed out and use to read and re-read them. They just seemed very accessible to me, it was like reading a good novel as he would talk a trade through from start to finish. I'm a little loath to make recommendations but its quality stuff.
He uses market swings for initial stops and trailing, lines for targets (on the whole). It is the trailing that is particularly interesting as he talks through his thought process' as the trade develops. When to move a stop to a newly formed swing high swing low, comments on price action that he's noticing etc.
Trade management is certainly one of the keys to this whole game and personally I can buy in to the exits (stops and targets) are more important than entries point of view.
Cheers.