Indicators That Are Used For Taking Profit
Forex Trading Buy Sell Indicators and Forex Trading Exit Indicators
Once forex traders have learned how to trade the forex market using forex technical analysis indicators that produce bullish forex signals or bearish forex signals based on a combination of forex trend following technical indicators and forex trend confirmation indicators then forex traders need to know more about the technical indicators that can be used to determine where to place take profit levels and exit open forex trades - Forex Trading Exit Indicators. These Forex Trading Exit Indicators will be used to calculate where to place a take profit level for a trade - after a trade has been opened. These indicators can also be used by Expert Advisor forex traders to Program Auto Stop Loss And Take Profit Expert Advisor MetaTrader 4 Platform - Auto Stop Loss And Take Profit EA MT4.
There are many types of technical indicators that can be used as Forex Trading Exit Indicators to determine where to take profit. A trader needs to know these technical indicators so as to know when to take profit and close an open trade.
How to Interpret The Market To Know Where To Take Profit - Forex Trading Exit Indicators
Before learning about the various forex take profit indicators available in the market and on the MT4 platform, forex traders need to know about overbought & oversold levels.
These overbought and oversold levels are used as forex profit taking levels and this overbought and oversold forex market analysis will be used to analyze when to close open forex trades.
Overbought Level - overbought levels on indicators is when price is above the 80 mark for technical indicators such as RSI indicator and Stochastic Oscillator. A trader will close open buy forex trades once the indicator is in the overbought region. The forex trader will not close the open forex trade immediately after the indicator is overbought but when the indicator leaves this overbought level and moves back below the 80 mark.
Oversold Level - Oversold levels in forex trading is when price is below the 20 mark for technical indicators such as RSI technical indicator and Stochastic Oscillator. A forex currency trader will close open sell forex trades once the indicator is in the oversold region. The forex trader will not close the open forex trade immediately after the indicator is oversold but when the technical indicator leaves this oversold level and moves back above the 20 mark.
Take Profit Indicators - Indicators Explained
Bollinger Band Technical Indicator - a trader will use the upper Bollinger bands and lower Bollinger bands to determine the levels where they can set their take profit levels for their open forex trades.
Parabolic SAR - Parabolic SAR indicator is a forex trend following technical indicator that draws dots below the forex price in an upward forex trend and draws dots above the forex price in a downward trend. These dots trail the forex price - in an upward forex trend these dots trail the upward trend below the trend and can be used to set where to close a buy trade - Forex Trading Exit Indicators. In a downward forex trend these dots trail above the forex price and can be used to know when to close open sell trades.
Forex Trading Fib Expansion - Fibonacci expansion indicator is used to calculate where to set taking profit levels, forex traders can use this Fibonacci expansion indicator to set their take profit areas.
Forex traders can learn more about the Fibonacci expansion technical indicator from the learn forex lessons section, while the Bollinger bands indicator is explained on the learn indicators & learn forex strategies section, Parabolic SAR indicator tutorial can be found on the learn technical indicators section.
