Profit Target & Exit Areas
Maximizing profits is essential
After the market presents a favorable trade entry, it is time to focus on "where to exit," a high probability trade. Entering a trade at the correct area will give you the lowest risk and the highest possible reward potential for each execution. Exiting the position based on what the market says, based on your trigger lines, will be the way you maximize the profit. This step will focus on defining the areas and how to pick the correct exit areas.
As a new Nexgen trader, you will want to start trading mechanically. Being mechanical means there is very little room for discretion, alterations, or adjustments. You make the trade, set your stop, move it once to reduce risk, exit if conditions change. You win or lose. In a trader plan a mechanical exit will be written like this:
Profit targets will be 10 and 20 ticks. The stop will move to break-even + 1 tick profit when the price reaches the 10 tick profit. When a trade is over, please track your trades in your trade tracking sheet taking notes and annotating the picture. Please take time to study how much profit was ultimately available for each of the trades after the 10 and 20 ticks profits are met. Focus on and study the trigger line configuration that continues well beyond the targets. Strong trigger lines are essential when entering a trade as well as staying in the trade. The easiest way to start to increase your profit targets is by increasing the profit levels by a few ticks.
After some experience, you will rewrite your rule: If the trigger lines remain strong, my profit targets are 15 and 25 ticks. My stop will move to break-even + 1 tick profit at 14 ticks of profit.
The following is an example of placing a 10 and 20 tick target on the short trend trade.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades

Termination conditions are exits too!

As you become more familiar with termination conditions, such as Fibonacci levels, one-to-ones, and prior divergence lines at the highs and lows, you will realize that those are some of the best places to exit a trade. For example, if you are trading into a termination condition exit, and read your trigger lines.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades
Exiting at termination areas will maximize profit. Be confident that if the market is strong enough to break Nexgen's termination areas, the trend will continue to the next Fibonacci level. You will be able to take new trend trades after the trigger lines have confirmed the breakout of the termination area. Remember: STRONG TRIGGER LINES BREAK THINGS!
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades
Last modified 11d ago