Profit Targets

What are Profit Targets?

A profit target is a predetermined point at which an investor will exit a trade in a profitable position. Also called take profit levels, they are part of many trading strategies that investors and technical traders use to manage risk.

Example of Profit Targets

Looking at the daily chart of XLM (Stellar) we can see 4 TP levels, all marked out in order: TP1-4. On the Easy Loot signal that this chart was sent out, the take profits looked a little like:

TP1 🎯 $0.14158

TP2 🎯 $0.16247

TP3 🎯 $0.27767

TP4 🎯 $0.30406

 

How to Identify Levels to Take Profit

Take profit levels (TP) are identified along well-known levels of resistance. On an uptrend, take profit levels go hand in hand with zones of distribution and resistance levels.

By identifying either a resistance level or a zone of distribution, traders can get a good sense of where to take profits and what price the market is going to see a pullback down to.

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