Profit Targets and Intra-Trade Management Techniques
Profit or loss happens when you exit the trade.
When should enter or exit a position? I exit?
Watch full screen- Entry and Exit logic, divergence and trigger line reading
SETTING PROFIT TARGETS IN NINJA TRADER LINK - 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 your picture.
After $200 profit is achieved, If the (small trigger inside the large trigger)AKA weakens, then I exit the trend trade after a divergence on the 5-1 chart becomes true or exit AT the Fibonacci level with a limit order just below the Fibonacci.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades
Typically, after several months of trading the software, you will recognize when all charts have small triggers (outside), the large triggers in trend direction, move stops to a no loss, and exit with preset targets or Fibonacci areas.
You will recognize that one-to-one (1:1's) on 5-1 chart as a great "first target". You may add a rule such as; exit my 1st profit target at the one to ones if profit is +/- $200 profit per contract or better. The following example shows the first exit at 1:1's and holding for more due to very strong triggers.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades

Fibonacci-based 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, read your trigger lines to figure out if the market will break the area or reverse the trend.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades
Exiting at the termination areas will maximize profit. When the market is strong enough to break Nexgen's termination areas, the trend will generally 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.
click to enlarge - Nexgen Software Services Rules for Taking Profit with Trend Trades
Divergence must be analyzed using the context of the trend and trigger lines. When small triggers are considerably "outside" the strong large triggers, the divergence has very little impact. As the small triggers weaken ( small triggers inside of large triggers) the divergences have a higher chance of reversing the trend, prompting exits. The following pictures detail several examples of divergences that should be ignored as well as divergences that would normally be trend trade exits.
click to enlarge- Trigger Line and Divergence reading
In the following picture, we add another layer to the concept of small triggers inside of the large triggers and add a higher or lower divergence exit. When you see this higher high or lower low divergence the market has a higher incidence of a trend reversal. This is a great condition-based exit rule.
click to enlarge- Small triggers inside large + higher lower divergences
The following video will walk you through managing a stop behind a new divergence potential. The rule is simple if there is a "POTENTIAL DIVERGENCE" that will cause you to exit your position you will move the stop 2 ticks behind the 5-1 chart reversal marker. Watch this video example.
managing a trade with divergence potential at Fibonacci areas
The following video also walks you through managing a trade as you trade into a 50-50 or termination area that will require more proactive stop movements.
exiting with divergence that becomes true


When a divergence pattern forces you out of your trend trade, it doesn't always mean the overall trend will end. Sometimes the market needs to make a larger pullback than a 5-1 chart can handle.
The market may continue the overall larger trend, especially larger timeframe charts such as a 21-3 chart that alert you to the fact you may take a "second-chance" continuation style trade. Here is an example of one such setup of a continuation-style entry.
click to enlarge - Continuation Style Entry
If you have a pivot stop out of a prior divergence low and the 13-2 triggers are weak, most traders will exit some or all of the trade at the prior low or move the stop tight on the position. If the market reverses from a pivot stop out of a divergence low, the trend may end if the 13-2 weak triggers agree. The location of the small triggers inside above the large triggers ( AKA weakening) tells you that the trend is finished and you probably will not get any more easy 5-1 trend trades.
click to click to enlarge - Nexgen Software Services Rules for exitingTrend Trades
It is generally a good idea to exit if there is a 2nd divergence that is a lower low or higher high than the prior pivot.
2nd divergence may cause exits
Conversely, you must IGNORE DIVERGENCE on charts if the triggers are in the strongest configuration and making consecutive lower lows. Hold for more profit with this configuration.
click to click to enlarge - Nexgen Software Services Rules for exitingTrend Trades
It is prudent to master your understanding of the rules in your plan by making simulated trades that are highly profitable and very consistent. Only after you are completely comfortable taking the correct trades and fine-tuning your own version of Nexgen's trading plan will you make real money trades. DO NOT TRADE LIVE MONEY UNTIL YOU HAVE A WRITTEN PLAN AND CAN FOLLOW THAT PLAN CONSISTENTLY AND CONFIDENTLY EVERY DAY!