# Thread: How do you set targets?‎

1. Newbie
Join Date
Apr 2012
Posts
12

## How do you set targets?‎

I am having difficulties in determine where to set my TP orders. How you know where to ‎put them? I read somewhere that I need to find the closest resistance or supports, but ‎how can I know which should be the final target? Thanks!‎

2. First you need to answer the question as to whether you are working primarily in a trend-following in ranging fashion.

3. Originally Posted by Marcelofx
I am having difficulties in determine where to set my TP orders. How you know where to ‎put them? I read somewhere that I need to find the closest resistance or supports, but ‎how can I know which should be the final target? Thanks!‎
Hi Marcelofx,

If knowing final targets was a definite science, no-one's profitable trades would end up being negative

Also as rhody has implied above, it will depend on your style of trading (e.g scalping, swing) AND what type of trade you are in (e.g range, trend)

I've seen a couple of methods here in Babypips that use Fibonacci retracements pretty effectively for determining profit-taking areas.

How do I do it? I subscribe to swing trading ( mostly lurking here: Forex Price Action ).
# If price is ranging, the upper and lower S/Rs become my profit-taking points.
# If price is trending, (in which case I will usually enter the trade after a pullback to a relevant S/R zone), I will split the entries and set the TPs at different S/R zones in the direction of the trade. I draw the S/R zones off the Daily and 4-Hour time-frames

If the last TP gets hit and price still continues in (my) direction, so be it, no point being greedy; I happily take stock of the profit I made and move on. ( Move on = waiting for price to get to the next relevant S/R zone and show where it wants to go )

Cheers

4. Its all system and environmentally dependent. If you really dont know run some back tests or play the "right edge game" and find out what works best over say 50 trades. Once you have honed in on 1-2 test them more rigorously. There is no one size fits all here. Exits are critical in the performance of your system. They can be the difference between a system that wins and one that loses.

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