Advantages of Profit Fixation using Support and Resistance Levels considering the Average Asset Price

Setting take profit target based on support and resistance levels, considering the average asset price, offers several advantages compared to using a fixed percentage profit for all assets at any market stage.
1.Adaptation to Each Asset's Characteristics:

• Support and Resistance Levels: These levels can be different for each asset based on its characteristics and price movement history. Profit target based on these levels allow for adapting the strategy to the specific asset.
• Fixed Percentage Profit: Using a uniform percentage for all assets may not account for their differences, leading to inefficient profit management.

2.More Accurate Timing of Fixation:

• Support and Resistance Levels: These levels are crucial points on the chart where the price may change direction. Fixing profits near these points can be more precise and justified.
• Fixed Percentage Profit: Using a fixed percentage may not consider specific points on the chart, potentially resulting in premature or delayed closure of deal.

3.Consideration of Market Volatility:

• Support and Resistance Levels: Market volatility can affect the location of these levels. Adaptive profit target takes into account changes in market dynamics.
• Fixed Percentage Profit: A fixed percentage does not take into account changes in volatility, potentially leading to a mismatch between the strategy and current market conditions.

4.Profit Target from the Average Asset Price:

• Additional Flexibility: In our product, there is the option to calculate profit target not only from the initial asset price but also from its average price. This adds extra flexibility to profit management, considering changes in the average asset price after safety orders.

Thus, setting profit targets using support and resistance levels, considering the average asset price, provides a more flexible and individual profit management approach for each asset at different stages of the market.

Ensure every step you take in the market is strategic. Equip yourself with the best tools to achieve profits!