Signs to Take Profits

Now that you have seen what to look for when entering a position, let’s discuss when you might want to consider taking profits.

We typically look for two main signs to exit a long position: very bearish order flow or a change in technicals, whichever comes first.

To spot the change in order flow, make sure to add the ticker to your Flow Dashboard watchlist.

If you start to see repeated bear activity, especially with large volumes or premiums, it may be a sign that the uptrend is over.

To spot the change in technicals, our technical analysis system comes with everything you need to identify a change in technicals and time the perfect exit:

Take-Profit & Stop-Loss Levels

• Three take profit levels and a stop loss level are automatically generated for each buy/sell signal.
• If your trade goes below the stop loss level or above any of the take profit levels, that’s typically a good time to consider taking profits or cutting your losses.

Caution Candles and Dots

• Yellow candles and caution dots can indicate the current trend is slowing down or changing.
• If you start to see multiple yellow candles or caution dots, that’s typically a good time to consider taking profits or cutting your losses.

Alerts for Trend Changes

• Create alerts on 1-hour and 4-hour charts to be notified of a trend change without monitoring.
• Signs of an opposite trend or a change in trend are worth evaluating.
• For example, if you’re in a long position, consider taking profits or exiting a position when you see sell signals, bear caution dots, or bear trend reversal diamonds.
• If you’re in a short position, consider taking profits or exiting a position when you see buy signals, bull caution dots, or bull trend reversal diamonds.

Look for the above signals to determine the best time to take profits or exit a position.

Remember to stick to your trade plan and keep emotion out of the process.