How to maximize profits intraday trading: Trend indicator take profit method

In the foreign exchange market, a take-profit strategy is an important tool that every trader must master. It not only helps traders lock in profits in a timely manner when making profits, but also effectively control risks and ensure the safety of transactions. For EagleTrader traders, a deep understanding of the core points of the stop-profit strategy and flexibly use it is the key to achieving stable profits. This article will introduce the basic concepts of a take-profit strategy in detail and share a practical take-profit method based on trend indicators!

Core points of taking profit

The key to taking profit is to identify and follow market trends. Once your trade starts to make a profit, it is important to see if the current trend continues. If the trend is not broken, it is a wise choice to hold positions to expand profits. The future changes in the market are difficult to predict, so we should focus on the current trend and seize the opportunities we can seize.

In transactions, most of the profits often come from a few successful transactions. So when encountering such a transaction, traders need to be good at seizing opportunities. Whether it is support or pressure levels, as long as they are still valid, we need to be patient and continue to hold positions to expand profits on a single transaction.

Develop a basis for your position

After understanding the nature and key points of stop-profit, it becomes relatively easy to formulate a basis for holdings that suit you. The key is to be able to hold on to those floating profit orders until the market trend changes.

Trend indicators take profit strategy

Next, we will share a specific idea of ​​using moving averages as a take-profit tool. After the order is floating profit, we can decide when to stop profit by observing the trend and using trend indicators. Commonly used trend indicators include moving averages and Bollinger bands. This article will use moving averages as an example to illustrate.

When making strategies, we should pursue simplicity rather than complexity. Simplicity helps in the execution of the strategy. Generally, we recommend using up to three moving averages, representing short, medium and long cycles respectively. In this article, we will use two moving averages: 10-period and 20-period moving averages. This setting is suitable for day trading and swing trading, and if traders focus on long-term trading, the cycle can be appropriately expanded.

Specific method of taking profit

Short order take profit:When short orders start to make profits, observe the relationship between the K-line price and the moving average. If the K-line continues below the 10-period moving average, you should firmly hold short positions.

If the K-line price crosses the 10-day moving average and closes above it, at least half of the positions should be taken, and the remaining positions should be observed for the 20-period moving average.

If the K-line continues to reversal and closes above the 20-period moving average, clearance should be made; if the K-line is suppressed by the 20-period moving average and closes below it, the remaining short positions can be continued to be held to expand profits.

Long orders take profit:The method of long orders takes profit is the opposite of short orders. If the long orders make a profit and the K-line continues to be above the 10-period moving average, you should firmly hold long orders.

If the K-line price crosses the 10-day moving average and closes below it, at least half of the positions should be taken, and the remaining positions should be observed for the 20-period moving average.

If the K-line continues to reversal and closes below the 20-period moving average, clearance should be made; if the K-line is supported by the 20-period moving average and closes above it, the remaining long positions can continue to be held to expand profits.

Overall, the core of stop profit is to balance greed and fear, identify and follow the rhythm of the market, and be decisive when necessaryTake action. Through continuous practice and adjustment, every trader can find the best way to stop profits for him, so as to move forward steadily in the foreign exchange market.