Glossary · on a chart
What is a take profit?
The price where a trade takes its profit - on the chart, at the next level.
Step by step
How to read it
- 1The entry, after price holds above support.
- 2The stop below the support - where the idea is wrong.
- 3The take profit just below the next resistance. Then measure it against the stop, in R.
Watch out
Common mistake
Setting the take profit a fixed distance from the entry. A level in the way often turns price first.
Hypothetical numbers
Worked example
- Technical analysis decides where the stop loss and the take profit go - always by the chart.
- Entry 1.0850 · stop 1.0830 → risk 20 pips.
- Next resistance 1.0900 → take profit at 1.0895, a reward of 45 pips.
In one line
Definition
The price where a trade takes its profit - on the chart, at the next resistance (buy) or support (sell).
Check yourself
Check yourself
Where does a take profit belong?
