There are many methods for determining where and how to set targets and objectives in trading, and in this chapter you will find several of my favorites that you will want to have knowledge of in order to be prepared to more accurately define your trading objectives. Some of the most popular and, I find, quite accurate technical price forecast tools are the measured move, Elliott Wave analysis, price cycle analysis, and Fibonacci measurements. These historically proven methods of analysis, when learned and added to your trading skill set, will give you a terrific advantage over other, less knowledgeable traders.
■ Determining Exit Points
No matter what your time frame is, it’s extremely important to know “when to sell.” Trading is certainly difficult enough without knowing when to sell or how to set price objectives, especially when intraday day trading, but just as important on all time frames with all trading objectives in mind. There are several methods traders have historically tended to use, including percent gain targets or percent loss stops, price projections based on fundamental values such as price earnings ratios, and so on. However, I have found over my nearly 50 years of trading experience that using my technical analytical methods of determining exit points or sell objectives works very well for the active trader.
Determining how or where to set targets even before you enter an order is not only key in enhancing ...