Many of the traders have the problem of cutting off good trades early and by this, they are reducing the profitability of their trading.
In this article, we will show on our AUD/USD trade alert the technique for releasing the profitable trade in a way that it would not increase the loss.
We issued to members AUD/USD long trade entry at 0.7365 level on May 11, with the following parameters, SL on upon the entry was set to 0.7310 level and TP level was set at 0.7500 level. First, we were targeting 0.7500 level of the falling trend line with a good risk reward.
In the following days we monitored the trade and on the H4 chart, we have set the level of support for the upside continuation, after the bounce from it. This was 0.7400 level as indicated on the chart. It was enough for us to move the SL from 0.7310 to break even, which is our entry 0.7365 level, and we have extended the target higher into 0.7550 level. In this way, the first step in releasing the trade was finished.
After this, the second step in order to lock the profit we have on the trade, we will move the SL at 0.7390 level and we will remove completely the TP target leaving the trade free in the case of the possible upside extension into 0.7600-0.7700 zone which will add, risk-free and with the profit, 200 more pips. By this, the trade is released for an upside continuation and possible complete long-term downtrend reversal into a long-term uptrend with a possible break above 0.7700 as shown on the weekly chart.
Happy trading! (click on the chart to enlarge it)
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