Apiary Fund Blog

Ideal Price and Time Targets

[fa icon="calendar"] Jul 4, 2019 6:01:00 AM / by Lukas MacMacKen

Regardless of your strategy, the end all goal of trading is to make money. The best way to end in the positive and accrue profits is to have the best price points you can and to do so in a time that allows for you to focus as much or as little as you need on the trades you place. This is where finding the ideal price and time targets for a trade come into play. Finding these areas can reduce your risk give you more time to go about other activities while your account is at home making profits.

The ideal price range can vary greatly depending on strategy and pair. If you're more of a scalper, like Shawn Lucas, your price target is going to be a very small range for your trade to trigger into early on. This usually has much smaller time targets than multiple trades making it a much more involved strategy. With these small price and time targets, traders can usually better manage their profits to reach certain levels and also put their losses in a range that they are satisfied with.

If a larger price target is your goal, your time target increases with it. You can make 2 pips in a minute but unless you’re trading BREXIT or the FOMC, 100 pips in those same two minutes is not a realistic target. These targets are more commonly based on support and resistance points or typical price movements. The benefit to these is you can place them and leave without having to hover over the mouse in expectations of it moving against you. Unlike with scalping, more retracements and slight movements against your trades are not as big of a deal. As long as the price target is a realistic value for the pair and time you plan on holding the trade, then the trade should fare well on its own assuming a well executed setup occurred.

When it comes to looking at specific price and time targets, other than support and resistance, Shawn Lucas created two indicators that give a value for both average duration of the movements and the average strength of the movement. These cycles are evaluated for the pair based on runs and reversals to give the trader an idea of where a take profit should be placed and when the trade should be checked on as the market is about due for a reversal. These indicators can be a great confirmation to your take profit idea or can be used to help fine tune and improve on a pre established strategy.

When you’re going through and trading, there is a wide range of options to go off of. Depending on the time you have a day or week to dedicate to trading and what your ultimate profit goals are will all change what your ideal targets are. The best way to find these is be first finding the time target you need. If you can only trade an hour a day, then a short term target like scalping or a long-term strategy where you can check u on the trades a few times is better. If you have more time a day, a day trading strategy may be your best. From there, you can find a strategy that works and find profit targets based on how much you are trying to make a day and what your win to loss ratio is.

Topics: Trader Tips, shawn lucas, price targets, time targets

Lukas MacMacKen

Written by Lukas MacMacKen

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