Forex Trader Chat

I had this pretty cool indicator coded for me which gives decent profit targets on a 3 minute chart.

The trade below had an initial entry at 1.3122 and a final target of 1.3221.  That’s 99 ticks (pips) of profit, scaling out along the way at each level. 

So for simplicity sake, let’s say we saw we had an opportunity to hit 4 profit targets.  We would trade at least 4 contracts, or any amount of contracts that will give us 4 lots (8 contracts would give us 4 lots of 2 contracts, etc.)  With this in mind and an entry at 1.3122, we would have taken 10 pips on our first target, roughly 40 pips on our 2nd target, roughly 70 pips on our 3rd target and roughly 95 pip on our final target.  Assuming just 4 mini lots in the trade, this equates to approximately $215 in profit. 

The swing low below this long entry was 1.3098, so that is about a $25 risk per contract or $100 total.  This give you a 2:1 reward:risk ratio trade and clear targets and stop loss.