upon further review of the S short trade posted earlier, i have revised the targets as shown on this updated chart. the new targets are T1 zone at 4.71-4.61, T2 at 4.25 and T3 zone from 3.89-3.74. target zones are used when there isn’t a clearly defined support or resistance level, or multiple levels exist in close proximity. i typically preferred to take full or partial profits just above (below) the target zone on shorts (longs), although i may shoot for the other end of the zone at times, depending on market conditions. the suggested stop on this trade remains on a move slightly above the recent high of 5.76 (i like to give a small margin to avoid stop raids) but as always, stops should varied based on each trader’s unique trading style, risk tolerance and preferred profit target on the trade. as a general rule, trades should offer at least a 3:1 R/R upon entry (limiting your downside risk to losing $1 to make $3+).
