Here is a quick tip how you can select the best take profit target.
The classic way
Classic way is based on selecting take profit target based on important support/resistance from higher timeframe:
If you invest with Fibonacci, you look for exit near extension lines. In most cases for me it would be 161.8% and 200% extension:
A tweak – selecting take profit target based on retracement line
There is one more way to select best take profit target. All you have to do is to switch to higher timeframe and draw Fibo retracement for recent important swing.
I will give you an example.
I’m long on WTI. Went long here based on 4h timeframe. I can of course use extension line and set target at 161.8% or 200% like in the example above.
In this case I expected a stronger move little bit higher. That’s why I use retracement lines from higher timeframe:
In many cases, when you use important, large swing, you can expect that 50% or 61.8% will work as resistance for the price. And we can use it as a take profit target for counter-trade based on lower timeframe like in this example.