xr86yp295m Forex Leader: 06/03/09

When to exit a trade

June 3, 2009 – Exiting a trade based on the fast MA

There are multiple answers to this question “When should I exit a trade”? You can let the robots decide for you, you can set a predetermined TP (Take Profit) based on the daily range of a pair divided by 2, for instance, you can use a trailing stop, or trail manually or you can move your stop above and below support and resistance zones, like I did yesterday.

And you can also exit a trade based on the fast MA (aqua line).



This is AUDUSD. I had put my SL above the resistance (red dotted line), but when I looked at the graph later (pic above) I saw that price was crossing the fast MA. Based on this, I decided to exit where I put a red line at 82.12. You can also see at the bottom that I took in a profit of +35 pips at 0.8212. You can see what happened next:



I’m not saying it works all the time, but it can help you decide to exit early when a pair shows early signs of being « exhausted » and secure some profit while you wait for the next cross in the other direction.