Possible Exit Methods

[brownsfan019]

Since many threads end up asking about how to exit a trade, I thought we could all compile one thread that shares the many, many ways to exit a trade. Obviously nothing is perfect, but this could be a nice resource for everyone.

So, if you are willing to share, post your exit method(s) and why you like them. It might be easier to post one method per post so that info does not overlap and confuse anyone. Let's try to give the full story - the pro's and con's of each method.

Also, if you want to debate the merit of the strategy, start a new thread or continue in another discussion if you can. If possible, I'd like to keep this thread clean, so feel free to link to another discussion. In other words, it would be nice to have one clean thread about this topic vs. this turning into a 'I love XYZ method' and 'I hate XYZ method' and then every post is about XYZ.

My example...

EXIT METHOD: Wide Range Body (WRB)
PRO'S: When they appear, can provide very timely exits.
CON'S: If they do not appear, you need to have a plan B for exits and/or end up letting the trade possibly retrace.
MORE INFO: http://www.traderslaboratory.com/for...dles-1480.html

[Soultrader]

Exit Method: Fixed Targets & Tape
PRO'S: Exit at first warnings. Easy to spot sellers.
CON'S: Tendency to exit too earlier. Will not sit through pullbacks majority of the time.
COMMENT: One really needs to understand the tape of the contract he trades. The ability to see the action behind each price level is important.

[cooter]

EXIT METHOD: Oscillator divergences at peaks (and troughs) of price AND volume.
PROS: Volumetric oscillations provide early indication of price reversals.
CONS: Subjective as to which signal to take. Early exits from valid trends possible.
COMMENTS: Second or third divergence often works better than first such pattern.