Forex traders talk a lot about the perfect entry point, combining different indicators and basic conditions to find the best opportunity. Much less attention is paid to choosing a good exit point, although this is an equally important aspect. The best ways to exit a trade in our article. Read on for the correct choice of the exit point from the transaction in the forex market.
System of criteria
One of the most logical ways Exiting a Forex trade refers to the strategy based on which you entered the trade. You've probably already planned your exit in advance. For example, if you entered a position at the cross of the moving averages, it is generally best to exit at the opposite cross. Also, if you bought on a breakout, you should sell when the price breaks the bottom. To exit a trade, you must have some pre-set criteria.
Trailing stop
It can be used to protect against losses and take profits. It is used alone or in combination with another method. One of the difficulties of using a trailing stop is determining the distance from the price action. Placing an order too close leads to taking profits too early. Setting it too far can lead to no profit at all. Trailing stop testing using past data is a good way to find the correct distance.
The question is whether these methods can be used to binary options and PAMM-trade ?!
target price
It is a good way to exit a Forex trade, provided you choose a realistic level. If the target price is too far away, it will not be met, and in the end you will most likely lose money when the market turns around. Likewise, if your goal is set too close, then you are not earning enough to justify the current risks.
Technical levels like pivot points are great price targets. They use the latest data to adjust to market volatility. Key reversal levels Are realistic price targets for profit. In addition, pivot points are monitored by thousands of professional traders and therefore better predict pivot points.
Technical indicators
Fibonacci, Elliott Waves and other technical indicators are also good ways to exit a Forex tradeand the best indicators of 2015 are the most effective in day trading. The Fibonacci Mathematical Sequence predicts tipping points with extraordinary accuracy, and the ATR indicator is a good tool for measuring price movements. Instead of picking an arbitrary number of pips as your profit target, halve your ATR in the last 14 days to provide you with more realistic data.