🔷HOW to set Take_profit Target?

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Setting take-profit targets is a key part of risk management and trade planning. Here’s a breakdown of how to do it effectively:

1. Use Technical Analysis

Support and Resistance Levels: Set targets just below resistance in long trades or above support in short trades.

Chart Patterns: Patterns like flags, triangles, or head and shoulders can give projected price moves.

Fibonacci Extensions: Common levels are 1.272, 1.618, or 2.0 to estimate where price might reverse.

2. Risk-Reward Ratio

Set a Ratio: A common minimum is 1:2 (risking $1 to make $2).

Match with Stop-Loss: For example, if your stop-loss is 50 pips, a 1:2 target would be 100 pips.

3. Use Indicators

Moving Averages: Price often reacts at major MAs (50, 100, 200).

ATR (Average True Range): Helps gauge how far price typically moves, useful for setting realistic targets.

4. Trailing Take-Profit

Use a trailing stop or partial exits to secure profits while letting the rest of the trade run.

5. Time-Based Targets

If you trade based on specific timeframes, consider exiting before major events (like earnings or news) or at session ends.

Want to see a practical example with a chart or pair/stock? Or do you trade crypto, forex, or stocks mostly?