Question: Does art of Forex lie upon determination of Take-Profit line?

Simply I really want to know how profitable traders deal with TP.

Now I am making consistent profitable trades. But since I see a huge extension of my direction [B]pretty often[/B] after I exit and close my trade at the particular point, I just wish that if I could get more efficiency. Regardless how great indicators a trader has, if he doesn’t place TP greatly, the trade won’t be that great; or worse, reverse without hitting TP and the price goes to the SL.

So, how would you place TP? Could you tell me how you do?

By the way, I trade in 15-min chart and often place TP on psychological major (00) minor(50) lines, and fib.'s extension 161.8%.

You could try not using TPs. It depends on your underlying approach, though. If you’re trend following you shouldn’t be using TPs. If you’re employing more of a range trading approach, you likely should. But you should be clear on what sorts of trades you’re after and not do a mix and match where you’re turning one type of trade into another mid-stream.

I use pivot points. Weekly pivot points for that matter. If you ask why? I’d simply tell you that, pivot points are very objective comparing to Fibonacci lines.

Here is an example of a trade I do:

EUR/CHF Sell
Two instantaneous trades (2 x 0.10 Lots)
S/L: Recent Swing High/Low
T/P:
1st: Week Open (Close the first lot, set the second to break-even)
2nd: Weekly S1/R1
3rd: If you get 50% of the way to your 2nd Target, Set a fixed trailing stop as big as the 1st Target. (To ensure the 1st target)

Elaborated: (Example)
1st: Week Open --| 60 pips|-- (close the first lot (+60 pips), let the second lot be your 2nd target with a break-even stop)
2nd: Weekly S1/R1 --| 90 pips|–
3rd: Trailing stop --|45-50 pips|-- half the 2nd target (You set your trailing stop after you got half way through)

I hope I didn’t confuse you.

Have fun.