Indicators That Are Used for Taking Profit

Index Buy Sell Trading Indicators & Indices Exit Indicators

Once traders have learned how to trade the market using analysis indicators that produce bullish signals or bearish signals based on a combination of trend following indicators & trend confirmation indicators then traders need to know more about the technical indicators that can be used to determine where to place take profit levels and exit open stock trades - Indices Exit Indicators. These Indices Exit Indicators will be used to calculate where to set a take-profit level for a trade - after a trade has been opened. These indicators can also be used by EA traders to Program Auto Stop Loss Order and TP Order EA MetaTrader 4 - Auto Stop Loss Order and TP Order Expert Advisor MT4.

There are many types of indicators that can be used as Indices Exit Indicators to determine where to take profit. A trader needs to know these indicators so as to know when to take-profit and close out an open position.

Index Exit Technical Indicators

Before learning about the various indices take profit indicators available in the market and on the MetaTrader 4 software, traders need to know about over-bought and over-sold levels.

These overbought and oversold levels are used as indices profit booking levels and this overbought and over-sold market analysis will be used to interpret when to close open stock trades.

Overbought Level - overbought levels on indicators is when price is above the 80 mark for technical indicators like RSI & Stochastic. A trader will close open buy stock trades once the indicator is in the overbought region. The trader will not close the open trade position immediately after the technical indicator is over-bought but when the technical indicator leaves this overbought level & moves back below the 80 mark.

Over-sold Level - Oversold levels in indices is when price is below the 20 mark for indicators like RSI and Stochastic Oscillator. A trader will close open sell stock trades once the technical indicator is in the oversold region. The trader won't close the open position immediately after the technical indicator is oversold but when the indicator leaves this over-sold level and moves back above the 20 mark.

Take Profit Order Indicators

Bollinger Band Technical Indicator - one will use the upper Bollinger bands and lower Bollinger bands to determine the levels where they can set their take profit levels for their open stock trades.

Parabolic SAR - Parabolic SAR indicator is a market trend following indicator which draws dots below the price in an upwards trend & draws dots above the price in a downwards trend. These dots trail the price - in an upward trend these dots trail the upwards trend below the trend and can be used to set where to close a buy trade - Indices Exit Indicators. In a downward trend these dots trail above the price and can be used to know when to close open sell stock trades.

Stock Indices Fib Expansion - Fibonacci extension technical indicator is used to calculate where to set booking profit levels, stock traders can use this Fib extension technical indicator to set their tp order areas.

Beginners can learn more about the Fib expansion indicator from the learn lessons section, while the Bollinger bands indicator is explained on the learn indicators & learn strategies section, Parabolic SAR indicator guide can be found in the learn indicators section.

More Courses & Tutorials:

Trade Stock Indices

Indicators That Are Used for Taking Profit

Index Buy Sell Trading Indicators & Indices Exit Indicators

Index Exit Technical Indicators

Take Profit Order Indicators