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Exit Strategy

The document outlines exit strategies for trading, emphasizing tight risk control and the importance of exiting when market conditions change or if the trader's edge is lost. It details profit-taking strategies, including trailing stop losses and taking portions of lots at predefined support and resistance levels. Additionally, it discusses market gaps, differentiating between professional and novice gaps, and provides guidelines on trading around these gaps.

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Sanjay Prajapat
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27 views2 pages

Exit Strategy

The document outlines exit strategies for trading, emphasizing tight risk control and the importance of exiting when market conditions change or if the trader's edge is lost. It details profit-taking strategies, including trailing stop losses and taking portions of lots at predefined support and resistance levels. Additionally, it discusses market gaps, differentiating between professional and novice gaps, and provides guidelines on trading around these gaps.

Uploaded by

Sanjay Prajapat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Exit Strategy :-

Loss management Exit Strategy :-

 Tight Risk Control


Tight Stop Loss, beyond/below the Swing low/high.
 If the reason you enter goes away, get out.
 If your edge is gone get out, don’t let price to hit your stops
 If market is Choppy, take profit at every swing & predefined area & bring your stop to breakeven
to avoid any losses

Profit Exit Strategies :-

 Bring your stop loss to break-even if price moves more than two times of your stop level.
 If market sentiment is positive than look to trail your stop loss below Candle low/high.
 If you can clearly spot some patterns/ waves than your can target the majored moves/
extentions of that moves as your pre-defined exit points

Multiple parts :-

 1st Portion of Lot should be taken out @ pre-defined exit point, which must be a minor or major
support / resistance level.
 2nd Portion should be taken off @ another/next Support & resistance level.

Candle dependent Exits :-

 If you are Day trading than after your entry price moves in your favour & after making 3 Green
candle in 15 Minute Time Frame, Start Trailing your stop below the Last Green candle.
 Price moves outside the top of Bollinger band & than close inside put your Exit point below the
low of that candle
 Keep your trade/ profit run until your see any against candle, you can look to exit a portion of
your trade at there & book the profits.
Market Gaps.
Gaps are ultimate picture of supply & demand imbalance. Opening of market around market big
news, prices gaps away, because at that price level there are no buyers & seller, Prices has to gap away
to find a buyer or seller.

Professional Gap :

Definition: AFTER THE DECLINE IN THE PRICE, Price Gaps up.

AFTER THE Rally IN PRICE, Price Gaps Down.

Action : Join the Gap/ Buy the first pullback. Wait for move to fill the Gap.

Novice Gap :

Definition: Is a gap AFTER THE MOVE IN PRICE, in the direction of that move.

Is a gap DOWN IN PRICE, AFTER THE DECLINE IN THE PRICE.

Is a gap UP IN PRICE, AFTER THE RALLY IN THE PRICE.

Action : Fade the Gap.

Break Away GAP.

Price is Making a Congestion Area & at opening prices Gap away from that level,
that Congestion area will work as a Support/ Resistance level.

Never Sell the low

Never Buy the high

Never Short @ support

Never buy @resistance

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