Posted on June 12th, 2009 at 1:30 PM

Here is a link to the original post I made just under an hour ago:

http://ragingbull.quote.com/bullseye/node/1429

The Euro has hit my first target of 1.3860 and initial profits are now taken on the trade.  Your new stop should be placed at the original entry. Typically, I like to have 3 profit targets set on all my trades.  The first one was the Gann Level we just hit the third and last level is the MOB.  For the second target I have to get a little creative as we have no Gann Level between our current price and the MOB.  In this case I am going to simply split the difference between my first target of 1.3860 and our target of 1.3772, this give me my next target of 1.3815 where I can place my next limit buy order for profit taking.  My typical profit taking strategy has me taking 1/3 profits at the first target, 1/3 at the second and the final 1/3 at the MOB.  But this can always be adjusted depending on the time the trade is taking to hit my targets.

In a perfect world we would have 2 Gann Levels for targets followed by the MOB for our last target.  However, we don't always get the perfect world and sometimes we have to improvise our targets.

If you haven't read Duane Gott's entry about profit taking, take the time to read it as he outlines a good partial profit taking strategy and also explains why stepping out of your trades is the preferred method.  Below is the link to his entry.

http://ragingbull.quote.com/bullseye/node/1427

Ron Wheeler

Additional Resources: