Setting a profit target is something that really makes most traders confused. However, the trader's confusion in determining which price is at which the cause is because the trader does not have a clear trading plan. In fact, if the trader has a clear trading plan, he certainly will not feel confused about where to take profit, how much profit, close the profit position but the price is still moving again. It is a negative thought of forex traders who want big profits in a short period of time.
One of the most important things in determining take profit is one's strategy and what analysis method is used. A trader who uses only technical analysis is of course different in the placement of his take profit than a trader who uses fundamental and technical analysis.
Often a technicalist trader will determine take profit based on profit gain and there is also someone who places his take profit based on support and resistance, if a trader who uses technical flow read the market supply and demand will certainly place his take profit in the supply and demand zone. Not to mention if a trader who relies on indicators to enter the market, usually his take profit is determined based on his pip gain.
