I’ve been searching for a decent exit Indicator. I currently use the Heikin Ashi candle sticks and Fractals, to tell me when to take my profits.
Does anyone else have a exit indicator that they use?
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i exit trades when the prices closes on the other side of a right-displaced 7-period moving average of the typical price (it’s displaced forward by 5 periods)
the “typical price” is the total of the high low and close divided by 3, but i think that just using a more conventional 7-period moving average of the close displaced forward by 5 periods probably wouldn’t be significantly different
it works well for me
i’m occasionally willing to vary it according my perceptions of recent support and resistance, so i don’t regard it as “written in stone”, but i like it as a general rule and i’ve stuck with it for many years, now
I use a momentum indicator such as the CCI with my signal line set at plus and minus 130 , a change in momentum often precedes a change in direction.
Example attached from a TVC chart.
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It will depend on your trading style and strategy.
Some indicators may lag more than others and/or give you false or premature signals.
Moving averages can work well, depending on your settings, as well as stochastic RSI and MACD/histogram.
Heikin Ashi can work well, but may put you out of the trade prematurely. Fractals will put you two candles out and could put you out of the trade prematurely.
Whichever indicator(s) that you decide to use, be sure to apply them to the higher time-frames so that you can gauge your exits better (unless you are scalping the 1-minute chart or something, then it may not matter much).
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I just use S and R levels for entry and exits.
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I was looking to ask this very question.
How does your TP come into play when deciding? Many folks here talk about taking trades that are 1 or 2 times your SL. What happens if your trade is winning, but you’re not at your TP, and then it starts to move against you? For example, I set a SL of 50 pips. Based on a RR 1:2, I look for 100 pips. I get to 60 pips and then the trade moves the other way.
I trade mostly the Daily. I’ve had a handful of trades go up 40 and 50 pips over the course of a day or two, only to end in a loss/SL hitting before I get to my TP or end of day review period. What’s the approach to realizing some of those pip gains?
Stop thinking of RR as the be-all-end-all?
Resize my SL to break even after I reach some percentage gain towards my RR level?
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My strategy to determine exit point will be depending with price action because often my plan is swing trading plan, I will look on daily timeframe and usually will modify stop loss if likely already running a profit if there are reversal pattern hence will determine exit point, simple trade only
Do you do this throughout the day or just once when you have open trades? I’m getting stuck on how often I should tweak as opposed to letting the trade run until my TP.
I think the R:R model is mostly used for determining stop-loss, but realistically, when it comes to take profit, you may only end up actually getting a 1:1 or smaller. It is impossible to know if your take-profit will be met, so it is used only as a guide.
You will want to take profit when you can get it but also ride profits for as long as you can. There may be a fine line for making that determination, but when you get better at reading the market, you will get better at knowing when it is time to close your position or knowing if you can wait it out. Laddering your buys (or doing multiple buys) can help with this, since it will allow you to take some profit while also allowing you to ride some positions out if you want.
If you were in profit 40 to 50 pips, then got stopped out (took a loss), then I assume that you were not monitoring your trades. If that is the case, I would recommend using a reasonable, trailing stop-loss, that way you can secure some profits, even if the trade moves against you.
Unless you are scalping, you should always move your stop-loss to break-even as soon as possible, but not too soon. If you do not wish to use the trailing stop-loss, then you can manually move your stop-loss, continually, as the price moves in your favor.
Exit determined by profit levels and proximity to ultimate profit target.
I keep it this simple too with Support and resistance.
I have also read that whatever indicator you use to get in a trade should be used to exit a trade as well. For example, if you use a Moving Average to get in, you would exit when it crosses back over.
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I am rarely to open trades, not in the daily basis, still, prefer swing trading strategy, but indeed not always TP will be triggered, so if likely movement against OP, still I use SL on a certain area usually support or resistance
I will use only 75% of the anticipated TP, yes may sacrifice some pips but I get more trades to close positively with out my intervention.
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"On top of that, the interest rate differential between AUD and JPY was huge.
From 2002 to 2007, the Reserve Bank of Australia had raised rates to 6.25% while the BOJ kept their rates at 0%.
That means you made profits off your long position AND the interest rate differential on that trade!"
When to enter in a trade after revealing interest rate differential? Like in that example
Yes, this is something I should start doing, at least once I hit break even or some measure of profit.
I do think I’ll get better at this over time, bit I want to get better now! Haha. I’m so impatient!
I could see many things happening in the time you wait for another cross over to take, at least at the higher time frames. I trade the daily, so using MAs probably wouldn’t work.
So lets say you’re at 90% TP, and then the trade starts to move the other way. You’d close if it got to 75%?
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Trading with market maker broker that offer free swap account hence will not become problem although there are huge differencies of interest rate between currency, because free swap account will never charged any fee for overnight interest
One of the biggest lessons that the market will teach you is patience. It can be a hard lesson to learn.
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mtd, not exactly, when I plane the trade, let’s say I estimate the target to be 100 pips, I will place my TP at 75 pips.
and I sure agree with moving the SL forward to BE.
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Support and Resistance and Breaks and Retests for me.
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Sound approach