Traders struggle with when to take profits; here are a few reasons to cover.
Reasons 👉🏽To👉🏽Cover 💰
My strategy does not consist of covering everything "all at once." I have reasons to cover 1/3 at a time, reasons to cover 2/3, and reasons to get flat (entirely out of a trade). This will vary depending on your strategy, but either way, YOU NEED REASONS TO COVER.
Extremely Overextended
- Price Action gets WAY too Steep, way too fast.
- Extreme distance from ema
Break of Trend
- Trend breaks reflect the end of intermediate momentum.
Approaching Major Technical Levels
- If you're short, you want to think about covering some size into major support.
- If your Long, you want to think about covering some size into major resistance.
Large Volume Retracement
Strong Stocks have small volume Pullbacks ( or Pullins). A large volume pullback can signal the end of an intermediate move.
If the volume bar (from the pullback ) exceeds the previous volume bar (or bars), it's less likely to carry through.
1st time All day
- Closes above or below EMA for the 1st time all-day
EMA divergence for the first time all-day
The Overal Market
The Overal Market trend is no longer your friend
The Overal Market Is Approaching Major Support or Resistance
Price Target Reached
- Don't be greedy collect profit
I hope this brought you value! Don't forget to check out the entire Trading series!
Your Trading Coach,Jeremy Fielder