[B]Student’s Question:[/B]
Based on the example in the video, pretending no candles existed after the doji, where would you put your take profit? I am assuming at the next support level?
[B]Power Course Instructor’s Response:[/B]
Since we are going long, it would be the next level of resistance. Resistance will always be above where the pair is trading while Support will be below it.
Another limit placement technique would be to simply double the amount of the stop and place that as the limit. So, if a 50 pip stop was placed on the trade, a 100 pip limit would be put in place. In that manner, a trader would have a 1:2 Risk Reward Ratio in place.