Many traders are pretty good at entering a trade but then they don’t know where to set a realistic Trading Target.
The truth is that you can learn a method to easily identify where to set the profit target.
And today’s trading setup is the perfect opportunity to explain how to set the right trading target in your trades.
Typically, in the vast majority of our currency trading strategies, we use a Support or a Resistance displayed by the Levels and Zones indicator to set our target.
However, today’s trading setup allows us to discuss how to read forex properly and how to identify the high probability target, which is the target level that most likely will be hit.
Trade setup – 14 Aug 2017
We have a high probability trading setup which is very easy to identify because:
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- The price and the RSI Exhaustion are diverging
- The RSI Exhaustion is bullish exhausted
- The Bottoms Tops Signal shows a top (and it’s just below a major resistance!)
The stop loss is very easy to set while the target level is a bit tricky.
The most obvious target would be all the way down to the support level at the bottom.
However, by making a clear and simple price action analysis, we identify three minor levels at which there is some interesting structure and, in particular, the lowest one appears to be the best one among the three where to place the trading target.
Trade update – 16 Aug 2017
The price is moving fast and it has already hit the highest among the three minor levels that we initially identified. Our target, though, is lower so we need to wait and see what happens.
Trade closed – 17 Aug 2017
The price kept moving lower quite fast and within a few more candles we got to our trading target.
By using three among the best technical indicators for TradingView and by simply applying the easy forex strategy described above, we closed the trade with a 3.5x profit.
Would you have placed your Trading Target at the same level?
Let us know by leaving a comment on the YouTube video above.
