Using ATR ( Average True Range ) indicator to Determine the Target Point
My favorite way to add take profit for orders is by using dynamic take profit depending on daily average movement for currency , ATR indicator are used to measures volatility for the symbol and predict the average movement for it .
How to use ATR indicator to Determine Take Profit Point for order ?
by using a percent of ATR Daily value as target point for orders , the percent value depends on market type ( ranging market , trending market ) and market session (asian session , america , … ) .
for example in ranging market i will use 20% of ATR Daily Value as target point and 30% to 40% of ATR Daily Value in trending market like america session .
for example :
if ATR value is 0.0079 now and the order opened at price 1.3606 the target point will be
1.3606 + ( 0.0079 ) * 30% = 1.3635 point
Using Multi Target Points
another good way to maximize your order profits is using multi target points and close the order on two or three levels using ATR indicator to determine the target point for each part .
for example :
if ATR Value is 0.0120 and the order opened at price 1.3500 :
close half of order at profit 30% of indicator Value .
Target Point = 1.3500 + (0.0120)*30% = 1.3530 .
close other half of order at profit 50% of indicator value .
Target Point = 1.3500+ (0.0120)*50% = 1.3560 .