Indicators That Are Used for Taking Profit
Indices Buy Sell Indicators & Indices Exit Indicators
Once traders have learned how to trade the market using technical 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 place 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 an open trade.
Indices Exit 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 overbought and oversold levels.
These overbought and oversold levels are used as indices profit taking levels and this overbought and oversold market analysis will be used to analyze when to close open stock trades.
Overbought Level - overbought levels on indicators is when price is above the 80 mark for technical indicators such as 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 immediately after the indicator is overbought but when the indicator leaves this overbought level & moves back below the 80 mark.
Oversold Level - Oversold levels in indices is when price is below the 20 mark for indicators such as RSI technical indicator & Stochastic Oscillator. A trader will close open sell stock trades once the indicator is in the oversold region. The trader will not close the open trade immediately after the indicator is oversold but when the technical indicator leaves this oversold level & moves back above the 20 mark.
Take Profit Order Indicators
Bollinger Band Technical Indicator - a trader 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 trend following indicator that draws dots below the price in an upward trend & draws dots above the price in a downwards trend. These dots trail the price - in an upward trend these dots trail the upward 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 Fibonacci Expansion - Fibonacci expansion indicator is used to calculate where to set taking profit levels, stock traders can use this Fibonacci expansion indicator to set their take profit areas.
Traders 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 tutorial can be found on the learn technical indicators section.
