ARTICLE CONTENTS:

I. TRADE PROFIT TAKING TIPS

II. REBOUND PROFIT TAKING TIPS

III. OPTIMAL PROFIT TAKING ORDER SETTING TIPS FOR MAXIMUM PROFIT AND EASY MATCHING

I. Tips for Taking Profit in Trading

Different tools have their own advantages and disadvantages, so it's best to apply multiple tools to increase accuracy. However, too many tools may not be good.

In this article, we will only focus on profit taking tips and not discuss how to use these tools, so the article will not be too long.

1. PROFIT TAKING BASED ON RESISTANCE AND EMA

Profit taking based on resistance is the area where the candles have many wicks. This is followed by a phenomenon of wick withdrawal and bearish reversal (previous time period). If using this method, we will place orders right at that resistance area.

Profit taking based on EMA (Using EMA34 and EMA 89) has higher accuracy when using time frames D, 3D, or W. Here is an example of the BTC chart with a 3D timeframe. You can see that since February 28, 2022, BTC has always been pushed down when reaching EMA 34 or EMA 89. Traders should only consider Technical Analysis without fundamental analysis or economic situation. So, we will take profit when the candle runs up to the EMA34 or EMA89 line.

2. TAKE PROFIT USING RSI

Traders can take profit using RSI indicator when it reaches overbought territory. The threshold of 70 or higher is considered overbought. Traders should pay attention to its resistance level when taking profit using RSI. Not all coins will reverse after RSI reaches overbought territory. If combined with candlestick patterns and RSI patterns (divergence or convergence...), this method will provide traders with a higher winning rate.

3. TAKE PROFIT USING BOLLINGER BAND

The longer the time frame, the more accurate it is (3D, W). This tool has 3 lines: UP, MB, DN.

When the candle is in the upper half and rises, the price touches the UP line, which is the uppermost line and tends to return to the middle line (MB). Traders should always prioritize taking profit when the candle reaches UP.

When the candle is in the lower half and rises, the price touches the MB line (the middle line) and tends to test again. If the candle does not close above the MB line, it will tend to return to the lower part of the Bollinger band. At this point, traders can consider taking profit at the MB line.

II. Tips for Taking Profit in Bounce Trades

Note: Bounce trades are also coin trades, so traders can apply the above methods.

  1. Take Profit Using Fibonacci Retracement

  • When a coin pumps strongly (x2, x3, x10) and shows a trend of reversing down, we can catch the retracement points (fibo 0.236) to earn profits (10%, 20%, 30%...).

  • Example: CLV chart. After touching fibo 236, it bounced back up 21%.

  • To determine where to take profit after entering at fibo 0.236, we use the Fibonacci retracement tool to find the take profit point, which is the fibo line just above, either fibo 0.382 or fibo 0.5.

III. Tip to Set Optimal Profit and Easily Matching Sell Order Commands

Many people in the group have encountered cases of not being able to close orders in time or not meeting their desired expectations. Here's what you can do:

  1. Easy Matching Order Placement

  • Determine the profit-taking range from the available tools.

  • Consider the buy/sell order book of that coin on trading pairs to see where the largest selling volume is (avoid those points and set sell orders slightly before them).

  • Place sell orders at odd numbers like (9 and 4), avoid even numbers. For example, if the selling range is determined at 0.15-0.2 (the order book has a very large order at 0.15, 0.18, 0.2), we will place orders around 0.1489 or 0.1449 if we want to set them near 0.18 or 0.2.

  1. Optimizing Profit-Taking and Stability

To lock in profits effectively, we should "close orders in multiple steps," avoiding missed opportunities when prices suddenly reverse. This is a stable method, buying low and selling high is just a myth.

  • For example, when people identify the profit-taking point in the range of 0.15 to 0.25:

    • TP1: Close 1 order at 0.149

    • TP2: Close 1 order at 0.194

    • TP3: Close the final order at 0.249

  • These TP points are just examples. You can use the available tools to find your own profit-taking points. If you find TP3 on a weekly chart, you can find TP1 and TP2 on smaller timeframes.

Finally, all of the above tools are available on the Binance chart. I hope this basic knowledge can help newcomers to the market. Thank you, everyone.