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EXIT STRATEGIES
Most of the time, my exits are based on a combination of two or more of the indicators.
I will use support/resitance zones – the “doubles” (this concept is explained in the advanced level section), reversal candles, divergence or patterns.
The same criteria used to enter a trade can be used to exit a trade.
If we are holding a position and we can see a lot of signs pointing out for an opposite trade, we should exit.
E.g. IfFor example, if I am holding a long position and 123 top Top is forming or leg Leg 2 from the “leg1Leg1/leg2Leg2” setup is completed, it is time to exit the trade.
FAnother inal exit strategy to remember is done usingthe price projection based on broken trend lines. In addition, I typicallyThis issue was described earlier in the book.
I don’t hold on to my position for a very long time, this is why I am using the 5 or 15-minutes charts. You can try to implement what I am doing on a higher time frame (such as the hourly chart) if you don’t mind staying in a trade for few hours, or for a couple of days.
Two of my friends: Mark Brown and Neal Hughes agreed to write small article about their exit strategies.
Feel free to read these: More exit strategies
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