Professional traders plan exits with specific rules instead of guessing. Measure the distance from a trend line to the highest candle, add that to the high for your profit target. For stops, wait for a confirmed close below the trend line, then exit just below the low.
And this happens over and over and over, and I believe it is the basis for all of the charts. And what happens is, if I was playing this little rizzy right here, my exit for a sell would be this move. That would be my exit for a sell— the distance from the trend line to the highest high candle. And then take what— if that's $20, add it to the highest high, that would be my exit for profit. Now my exit here for a loss would be if this trend line breaks. I might do it like below the low here. My only hesitation with doing it like real close, like right here, is a lot of times it will come test it and then just bounce. So I very much kind of like to wait for like an actual close. Like, so if the next kind of like closed below this trend line, I would get out and say, okay, this is probably breaking here. And kind of also always apply a max loss to all of your trades.
