Hi, Currently, I’m practicing on demo account. So far, I enter a trade and take profit based on random guess. If the final candlestick is small, I entered 20 pips take profit. If it is big, I entered 50 pips or more. I want to know, is there any MT4 tool that I can use to determine take profit? I consider using Fibonacci but I couldn’t really understand how to use it.
Have you studied at the school on here?
If not, I suggest you do
i agree read the school here.
What I like to0 use is ATR usually between 1 and 2 times and a trailing stop.
Yes, I already studied the school here, but I’m not sure if I missed anything. Which part of the school teaches this? Can you provide the link? I already studied the support and resistance as well as Fibo but still I couldn’t understand them properly.
Hi, Can you elaborate more about your method?
When I think of taking profits, I think of pulling money out of the account. Is that what you mean?
Hi,
Unless you have some prior experience I don’t know about, you really should work your way through all the lessons. You cant just pick out bits and expect to understand it all, fx is more complex than that.
I will but I highly suggest u read about it and understand and see if it fits how u trade. It works well for me but im still always looking to tweek it.
Basically U can take the ATR and use multiple. The basic ones would be 2 x atr for a tp and sl. or 1 x atr for sl and 2 for tp.
Now if your trading daily tf u can have a couple 100 pip stop. The only way u will know if it good for u is to understand what it is and why u r using it. Read up on it first and dont use in live account until u r comfortable with it.
Thanks for the response. I want to know, where can I get more detail info about this?
I personally take profit on a mechanical basis. 2x risk seems to work best for me. I’ll close out all but 1 mini or micro lot at the target and let the last little bit run to see how far it will go. Sometimes the market will give me as much as 10x risk. Most often though I will get little more than break even + 1.
As I know, there is no fixed rule about how to determine Take Profit (and Stop loss) correctly because different trader will be different view about how to control the risk, how to face the risk and money management in trading. Some traders prefer to use fix SL and TP ( with certain risk reward ratio) but another traders could determine them (SL and TP) depend on market’s condition. All of them are correct if you are comfortable to use it and it’s suitable with your strategy in trading. About how to find the best setting for you, no one could help you except yourself with enough practices in forex trading.
If your intrested in ATR this gives some good insight.
Average True Range (ATR) | Forex Indicators Guide
If you haven’t studied this particular lesson on setting profit targets in our School, please do! If you have but you still can’t quite figure out your strategy for this one, I suggest you base it on the time frame you are looking at or how long you plan to keep your positions open. You could look at major inflection points or you could base it on technical indicators or the pair’s average daily/weekly range.