Setting profit-taking goals is one of the most important things to do before trading. Take-profit points directly affect the RR rate of a trading strategy, so when finding the right take-profit points, traders will have strategies with high RRs.

However, determining profit-taking is not simple, as it is influenced by many factors such as market conditions, with both fundamental and technical aspects of the market at a given time. Never set profit targets based on personal thoughts but on specific prices with high probability in the market. But first, in order to do this well, a trader must understand the trading method first.

Here are 3 common goal profit-taking strategies you can use:

Fixed take profit with key resistance levels

Note, the higher the timeframe, the more meaningful support resistance is. The support and resistance levels that we can apply are horizontal resistance, trendline, Fibonacci, price channel, patterns such as head and shoulders, wedge, two peaks,...

When placing take profits in these zones you should place below resistance and a little above support has a higher probability of taking your position. Just be sure, however, that there are no other support or resistance levels in the way as the price approaches your target. If so, the ability to achieve that goal will be more difficult.

For example, the chart of AUDUSD H4 bracket below:


You can see that partial profit-taking works well in this example. In a buying strategy, we place to take profit on resistance, in a sell strategy we place profit-taking on support.

Profit targets should be set from past established supportive resistance levels. You can see that at some point on the chart, the horizontal resistance meets the resistance of the price channel. Here, we can place fixed take-profits at the confluence resistance support zone.

You note confluence support and resistance levels will be stronger than the individual thresholds, so you should give priority to confluence areas.

Take profit in part


Also on the chart above, we can also use the partial profit-taking technique to maximize profits for the trading strategy. At the same time increase the RR rate. As we can see in the picture below, the strategy to buy at the top of the bull can take profits into 3 parts. At 1R we lock 1/3 of the mass, and when we reach 2R we lock 1/3 of the mass. The remaining 1/3 of the volume will lock when it reaches 3R. But according to this chart, we could not lock at 3R, this last order is when the price breaks the channel.

Move stop loss

Stop-loss is also a way to protect and maximize profits for your strategy. Moving the stop loss requires techniques and principles. For example, when the price is making a profit of 1R or 50 pips / 100 pips then you start moving your stop loss.

There are also stop-loss techniques according to trade settings, support, and resistance, ... which are also very reliable. That is, when the price forms strong support and resistance or establishes a new trade, you move your stop loss there.

According to the chart above, if the price moves about 200 pips profit, you can move your stop loss 50 pips away from the current price (that means you take profit at 150 pips). If the price goes back 50 pips, your order will be closed.

Above are the 3 most common profit-taking strategies. You should use a way that you feel familiar with. However, if you want to maximize profits then you should grasp how to take partial profits or move stop losses. However, when you do not understand and verify it, it's best not to change your goal setting.