How to set Take Profit (and when to Move it)

How to set Take Profit (and when to Move it)

How to set Take Profit (and when to Move it) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

One thing is for sure: without a clear rule on How to set Take Profit, you cannot be consistently profitable.

Luckily, understanding where to set Take Profit is easy!

You just need to keep your trading chart very clean and simple so that you can clearly read the price action.

Additionally, you need to use a few quality Trading Indicators like the ones we’re using in today’s live trade on our TradingView chart.

Once you do that, it becomes very easy to understand where to set Take profit.

But that’s not all!

With the right Trading Indicators, you can also understand when to move the Take Profit level.

Why should you move it?

Because there are trading opportunities, like in the trade below, that you can increase your profit without increasing the risk!

Trade setup – 25 Jul 2019

Why and how you can move your target Setup 1

The setup is very clear and simple.

We have an impulse down, followed by a consolidation which we both highlighted with the blue lines.

Now the price has just broken down the consolidation, and it did so on a red candle (colored by the Breakout Pivotal Bars).

Moreover, the bearish Sentiment Index at the bottom has broken down its trend line as well, right on the same candle.

This indicates that it is very likely that the price will continue to go down and make a second impulse at least of the same size as the previous one.

Trade update – 26 Jul 2019

Why and how you can move your target Setup 2

The price is moving down nicely, and we moved the stop loss to breakeven so that we’re now in a risk-free trade.

This means that, in the worst scenario, if the price comes back up, we’ll get out of the trade without losing any money.

But considering that there’s no major technical evidence for the price not to go significantly down, we also lowered a little bit the target so that the profit would now be 4.5x.

It is something we typically don’t do but this trade seems to offer the right opportunity to do so.

In any case, we’ll play it safe by lowering the breakeven level should that be required.

Trade update – 29 Jul 2019

Why and how you can move your target Setup 3

The price just continues to go down, and it is forming the second impulse as we anticipated.

Trade closed – 29 Jul 2019

Why and how you can move your target Setup 4

Target reached without any big issue.

The price went down quite gently and as it was coming down we decided to move the target a little bit lower because we were confident in our technical setup.

Moreover, the major support at the bottom was probably attracting the price even lower than our initial Take Profit.

In fact, it did because our Take Profit order was triggered once we reached a 4.5x profit that is a bigger profit than what we initially expected!

Do you typically move the Stop Loss and Take Profit levels while your trades are open?

Let us know by leaving your comment on the YouTube video above!