Trendline Channel Forex Exit Strategy
The use of trendline channels are a very easy way to determine profit target levels in forex. How does it work in downtrends? You go short at the upper trendline and take profits at the lower trendline. How does it work in uptrends? You go long at the lower trendline and exit the long trade at the upper trendline.
Trading example: How the forex exit strategy works in downtrends (EUR/USD 4 hour chart)
Steps To Determine Profit Target (Short Entry1)
1) Draw the falling trendline channel: the upper trendline connects the highs (resistance) in the downtrend while the lower trendline connects the lows (support) in the downtrend.
2) Take profits at the lower trendline.
3) As a result, the short trade target should be exited at 1.1891 in the 4 hour chart above.