Please browse our blog for more information about trend trading, don’t forget to checkout the comments section which is where you will find a lot of very useful infornation posted by other traders about trend trading, look for the comments links
Related posts:
- Is it true that oscillators perform badly in a trending market & Trend following Inds r bad in trading market?
- Forex trading and how to go about it from home?
- What is the best online stock trading service to use for starters?
- Technical Analysis: How do you calculate the "Trading Range" vs. "Trend" of Stocks?
- Do automated forex trading robots work in the forex currency market?
People pay me for this kind of advice. I have yet to realize an ROI of less than 20% per annum. If you are interested, you need $100k and to email me.
There is no set answer for this because it all depends on a trader.
A target can be a mental target, a risk aversion target, a profit target etc…but I think I know what you mean….
There are several ways:
1. Pivot points (pivot zones)
2. Fibonacci studies
3. Support/resistance lines
For example, if using pivot points, you have S1, S2, S3, P, R1, R2, R3.
S is support
P is pivot point
R is resistance
If you calculated these before 5 PM EST (End of trading day for most FX brokers) and then at 5:00:01 the market opened ABOVE your pivot point — that is an indication that the market will be bullish. Now your first price target is R1, then R2, then R3.
One strategy, other then closing your position, is to reduce your position size at each of those levels.
Hope that helped!