Here are 5 easy steps on how to set profit targets to exit a position when using Reversal Patterns during technical chart analysis in forex.
The most important question in the mind of every awesome trader is, “When do I enter the market? When should I buy, and what is the best price to sell at?”
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How to Set Profit Targets – 5 Steps
For all the reversal patterns we have learned (doubles, triples, head and shoulders, and saucers), the steps in ordering a trade are as shown here:
How to Set Profit Targets – Reversal Patterns
Once the technical pattern is confirmed, you need to check in with the four remaining points of the Invest Diva Diamond before you place an order. If everything looks fine, you can continue with the rest of the steps.
How to Set Profit Targets – Reversal Patterns
* Of course, the price sometimes keeps moving even after it reaches the target price. But as we are smart and risk-averse traders, we don’t take greedy and nonessential risks.
As you may have noticed as you went through the steps, trading currencies needs a lot of patience and time. You need to give the market time to move and the currency pairs time to dance! That is why trading forex is perfect for someone who is busy doing a lot of other things at the same time, which is true of many women. Once you have confirmed all the points of the Invest Diva Diamond about a specific market movement, all you have to do is wait and let the markets do their job. You can wait for the markets to move while doing stuff like, but not limited to:
- – Waiting for your nail polish to dry
- – Waiting for your lasagna to finish baking
- Working in the office
- – Pumping milk for your baby
- – Working out in the gym
- – Chatting on the phone
- – Watching TV
- – Going on a date
- – Sleeping
- – Going on vacation
- – And so on
Important Note on Profit Taking
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Have the prices hit your stop or limit target yet? Congratulations! You just made some money while you were doing other things. Now you can reward yourself by going shopping for that cute dress you just saw on your way home.
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Related:
- Candle Charts – Technical Analysis with Candlesticks
- Ichimoku Kinko Hyo- What’s Best Time Frame to Use it?
- Rectangles – Technical Chart Patterns
- Bullish Reversal Candle Arrangements
- Forex Patterns – Basics of Technical Charting
- Triangles – Technical Chart Patterns
- Continuation Patterns List
- Online Risk Management for Traders & Investors
- Day Trading Strategy for Beginners
