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When to take profit is opposite to when to stop loss.  Let's talk about the stop loss first; we set stop loss based on one or mixed of experience, feelings and technical signals.  In simple terms, say there is a boundary for stock price in a determined period (take a look at any chart and you can always spot the lowest and highest of course after it happened).  What we want is to buy at the lowest boundary and sell at the highest boundary.  If we know the boundaries then we know what the stop loss and what the selling price is.  It is quite hard for inexperience individuals to determine all this by their own.


Here comes the trend chart to determine not just the trend but also the boundary, below is an example of a perfect trade by following the signal on the chart.  The risk boundary is from 0 (lowest) to 100 (highest) with stacked color bars to show the direction of trend.  Green stacked bar means upward and red means downward, the continueous of upward trend makes higher risk and this makes sense.  This helps you to determine when to take profit visually.


Here comes an easy strategy, take profit at for the first red bar after a significant continuous of green bars or take profit when the risk level reaches (bar length) high zones (like 85 or up).


Another strategy is to follow the green bars to accumulate your position over time.  Say you saw the first green bar and take 20% position, then the next day if the green bar appears again, take another 20% and so on.  This reduces your risk of exposure; of course the con is it reduces your profit.  It really depends on your personality to choose which method you feel more comfortable.  Here concludes how to find the perfect exit price.

To show the risk boundaries and direction of trend in this tutorial.