We manually closed the trade because a new major support level appeared (thanks Levels and Zones!)
Essentially, our initial technical analysis has now changed.
In fact, if we still expect the price to reach our initial Trading Target, we must assume that the price has the strength to fall against two major support levels which are, instead, creating a significant upward pressure.
This trade is one of the rare situations in which we were forced to change the plan while the trade was running.
What happened is that, as we got very close to the target, a new support level appeared just before the target.
This rare situation means that the price might not ultimately reach the Take Profit level, which is the reason why we closed our trade.
This is one key rule in our exit strategy.
It’s a rational decision that we took and was justified by the significant change in the underlying technical chart.
In the end, though, we still got a 5x profit.
How does your Exit Strategy look like?
And how do you handle trades where the Trading Target becomes unlikely to be reached?
Share your tips with fellow traders by leaving a comment on the YouTube video above!