Exiting orders is one of the key components in a trading strategy. Professional traders often look for quality trading setups, one of the factors they define for quality is their exit point.

A quality trade setup will have a clear exit point and little resistance so that the price can easily get there. So how to define a clear and reliable exit point for the trader, please refer to some trading tips below.

Technical price ranges that traders may consider exiting

  1. The day's low peaks
  2. The previous day's bottom peak
  3. The bottom of a sideways price range
  4. Support resistance
  5. Tension zone
  6. The important low in a trend

The price zones with the confluence of many of the above factors will be more reliable. However, when setting a take profit point, you should place or take profit in part at a price range where price is likely to come. That means that the closer the technical price ranges to the price, the more likely the price will come first.

Here are a few exit tips for traders as a reference
  • Exit is based on the principle of the method and must be determined before entering the command.
  • Regardless of the exit strategy you use, you need to allow the trade enough space to grow before it moves to stop loss.
  • Supportive resistance, Fibonacci extension, and previous troughs are good ways to place an exit in a trending market.
  • In choppy markets, it's very effective to use critical resistance levels to exit orders.
  • If you are a new trader, you should set take profit fixed before learning how to hold orders to increase profits.
  • Exiting orders when there are many confirmation signals, not because of a small signal but fluctuate mentally, even if you do not exit according to your personal thoughts.
  • When the market has strong volatility, you should exit early.
  • When the market suddenly rises or falls sharply in a direction beneficial to the strategy, you should also exit the order in case the price corrects after such a sharp increase or decrease.