Closing the position upon reaching the goal of entering the instrument.
1. You can close the position at the next nearest level, guided by the rules for entering by level:
- on the first puncture, the deal closes (if desired, reopens on the bounce)
- at the second puncture it can be opened again because of the possible continuation of the movement.
2. The limit on profit per trade.
Depending on the type of level, you can analyze the average rollback from levels of a similar type and work out a profit limit for such a transaction.
When the limit is reached, the position or part of it closes.
3. To make the profit flow, I recommend closing half of the position while simultaneously placing the stop at breakeven, and close the rest of position by levels.
Closing by time limit
As a rule, if the rollback movement does not develop within 10-15 minutes, then the market will move further along the local trend.
In this case, it is recommended to close the close the position by market.
Closing by candle expiration
Sometimes bounces do not get to the levels or to the size of the limit of the deal, so you can close the deal by the expiration of the candle.
*** Recommended candle timeframe - 5 min.
Signs of expiration:
- as a rule, this is the longest candle in the retreat or medium in the dominant movement;
- retrace movement begins to slow down;
- the working edge of the candle begins to twitch up and down,
either slowing down or staying in place. *
*This is due to the fact that, for example, in case of growth, transactions begin to execute not only by offers, but also by bids, because sellers who play a pullback want to fix the profit, which, as a rule, is fixed by market.