Hopefully this chart is not too confusing.
Here is a trade from last week. The week before there were no trades on this pair as it was a changeover week where the moving averages swapped over from a strong directional move.
The 8 LWMA is ABOVE the 10 LWMA = BUY ONLY
There is a full body H4 Candle that has Opened and Closed ABOVE the current week’s Weekly Value Area.
Now I can look for BUY TRADES on a return to the Weekly Value Area
ENTRY: There is a H4 BUY (GREEN) CANDLE that has closed ABOVE the WEEKLY VALUE HIGH.
[The low of this candle is lower than the previous candle’s low which is a strong sign to buy at the close of the candle.
STOP: Below the H4 Candle Low. You must expect to be stopped out on EVERY trade. That way you will remember to manage your risk because you will most likely lose this trade.
The 1st Target was the 1.57000 number. Stop was trailed to the low of the H4 candle and just above breakeven.
[When price has moved 20 or 30 pips in your favor and you are only risking 30 pips for example it is important for your account and your psychology to bank some profits.]
The 2nd Target was the OPEN of the HIGHEST H4 GREEN CANDLE.
Thoughts on PARTIAL PROFIT TAKING:
When you bank profit and how much you bank is up to you and is your decision alone.
I’m trading to make 3% to 5% per month as that is my job. My job is to make that kind of consistent return.
Others will have different expectations and styles and personalities.