Forex traders talk a lot about a perfect entry point, combining various indicators and basic conditions to find the best opportunities. Much less attention is paid to choosing a good exit point, although this is no less important. Best ways to exit a deal in our article. The correct choice of the exit point from the transaction in the forex market, read on.
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 probably already planned the exit in advance. For example, if you entered a position at the intersection of moving averages, it is usually better to go out on the opposite crossing. In addition, if you bought on a breakthrough, you should sell when the price breaks the lower mark. To exit the transaction, you must have some pre-set criteria.
Trailing stop
It can be used to protect against losses and take profit. 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 profit too early. And setting it too far can help you to make no profit at all. Trailing Stop Testing using past data is a good way to find the right distance.
The question is, can these methods be used for binary options and PAMM trading ?!
Target price
It is a good way to exit the Forex transaction, provided that you choose a realistic level. If the target price is too far, it will not be achieved, and in the end you are likely to lose money when the market turns around. Similarly, if your goal is set too close, then you are not earning enough to justify current risks.
Technical levels, such as reference points, are an excellent price point. They use the latest data to adapt to market volatility. Key U-Turn Levels - These are realistic price goals for profit. In addition, pivot points are monitored by thousands of professional traders, and therefore better predict pivot points.
Technical indicators
Fibonacci, Elliot Waves and other technical indicators are also good ways to exit a Forex trade, and the best indicators of 2015 are most effective in day trading. The mathematical Fibonacci sequence predicts tipping points with extraordinary accuracy, and the ATR indicator is a good tool for measuring price movements. Instead of choosing an arbitrary number of points as a profit level, halve the ATR in the last 14 days, this will provide you with more realistic data.
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