how to know when to exit a trade?
i use fibonacci retracement to know when to exit. Usually in an up trend, the fibonacci levels are meant to hold price up and keep price from falling, so when i see that price starts breaking through the fibonacci levels, i exit the trade.
I exit before important news releases for example when us nonfarm payroll news is about to be released, i exit any trade that has to do with the us dollar. But on days when there is no important news coming, i exit after i see a bullish or bearish engulfing pattern.
So, if we are in an upward moving trend and i suddenly see a big bearish engulfing pattern, i exit. If we are in a down trend and i suddenly see a big bullish engulfing pattern, i also exit.
There are several candlestick patterns and indicators that help guide you on when a trend is about to change
I always exit when price is nearing a major support/resistance level because there is a high chance it might reverse. I try to execute multiple trades before price gets to a support/resistance so i exit with profits as it nears it.
I exit when my profit target is reached. if my stop loss os wirth $10 and my trade reaches a profit of $20 i exit and thats a 1:2 risk to reward.
i use fibonacci retracement to know when to exit. Usually in an up trend, the fibonacci levels are meant to hold price up and keep price from falling, so when i see that price starts breaking through the fibonacci levels, i exit the trade.
When I am facing a loss, I always wait till my stop loss is hit. I have had many bad experiences where i exited before my stop was hit, only for price to reverse course and move in my intended direction. But when I am facing a profit, I wait till price rises above/below the simple moving average.
One technique is to use the Simple Moving Average (SMA). If you went long and candlesticks begin to fall/close under the 14 day SMA curve, it is a bad omen. Same thing with if you were short and candles begin to close above your 14 day SMA curve it is a warning sign.
