Okay, so now what if the market moves in your favor right? Where do you take profit? So when it comes to exiting your winning trades, you have two options: number one. You can adopt a swing trading approach or a trend following approach. Let me explain this two methods right to you and you can later on kind of decide which of these two approaches suit. You best, there's no right or wrong here.

There's! No, you know, swing trading is better than trend falling or stuff like that. There isn't right. It really depends on you, the trader, so first, let's talk about swing trading. What exactly is swing trading so as a swing trader? What you're trying to do is to capture one just one move in the market just at one swing zoom, that's it so to illustrate what is a swing in the market.

Let's say, market is in a range between these highs and this lows market goes up. There's one swing comes down. There's another swing goes up. That's one swing come down, that's another swing, so, basically from here to here.

This is one swing here here. This portion here is another swing. Here is another swing, and this is another swing, make sense. I know this looks like a mess but in in other words, right swing.

Trading refers to capturing one move in the markets, so another question is: how do you capture one swing so to do it right? You want to exit your trade before opposing pressure steps in so, let's say: if you're a buyer, then opposing pressure is seller. If you are a seller, then opposing pressure to you is the buyer. Let me just explain right since uh some of you might be confused. So, let's say again: market is in a range and you bought near the lows of support, let's say bought over here.

Okay, now let me ask you: if the market moves in your favor, where do you think sellers might come in right to push the price down lower? Well, if you know that this is a range and if you know that this is an area of resistance, you will conclude that hmm rainer, i think you know sellers might be at resistance right trying to short the market at this area and, if you think, along Those lines you're not wrong, so this is what i mean by you know, exit before opposing pressure steps in if you know that this is an area of resistance, you want to take profit before resistance. The key word here is before resistance. Okay, you want to set your take profit level here above resistance or here. Why is that very simple? Because if you were to set your take profit level here above resistance, what it means, that is that you will only exit with a profit if the market breaks above resistance, if it doesn't right, you will watch your trade, reverse 180 degree against you and hit your Stop loss.

Do you want that, of course not so? This is why you want to be smart about this right. Don't set your target above resistance because you're making the market difficult right to reward you instead set it before resistance before opposing pressure steps in because this is where you have a higher likelihood right of exiting your swing trade with a profit okay. So let me share with you a few charting examples, so you know what i mean so look at this chart over here. Let's say, for whatever reason right, you went along on the you saw this bullish candle and you went long on the next candle open, okay and you're, trying to just capture one swing in this market.

This is the oil market. This is the daily time frame. Now, let me ask you: where, should you exit this particular swing trade? Where should you set your target i'll, give you three options: okay, option! One is here a b or c all right. Let's call this a b or c think about this right.

Where do you want to exit this trade to capture one swing, a b or c, and the answer is c? Why is that remember? We want to exit our swinging trade before opposing pressure steps in if you set it at a you, are making the market. You know difficult to reward you, because the price has to break above this swing high over here before it can reach your target, making a making. You know things difficult if you set it at b, it's not as bad as ar, but remember this is a swing high. This is a potential area where selling pressure could step it.

There's no guarantee the price will re-test this swing high before it reverse down lower. Okay, because the price could come up higher, just approaching the swing height and then start to reverse down lower meaning the opposing pressure, or rather the sellers step in earlier right to push the price down lower. So if you want to be conservative, if you want to be smart about this, and if you want to capture just one swing in this market c right would be a better option, because this is where opposing pressure - or rather this is the level right before opposing Pressure will step in right to push the price down lower. Okay, so to me, c right is a much better level right to exit your swing trade.

This is where this is, where you're kind of like earlier a little bit right and exiting your trade before opposing pressure at the swing high steps in to push the price down lower. So, if you're exiting your trade somewhere here right, you're kind of you know putting yourself in good shoes, because this is the swing high. This is the area of resistance, and this level is before the opposing pressure at this swing high. Here another example.

This is the chart of goal. Okay, so let's say, for example, this time around market here had a rebound okay, so let's say at this low it rebound closes screen. Let's say you enter on the next candle open again. Where at what point right? Do you want to exit your trade to capture just one swing? If you ask me, it will be somewhere about this level here, because you, okay, first, let's first identify: where is the swing high and low in this chart? So the swing high is at this point price point, and the key thing here is to exit your trade before the swing high before opposing pressure.

Steps in so this is ideally right. Probably somewhere about here is where you want to exit your swing trade. So if the market you enter over here, this over here is where you are likely to exit this particular swing. Trade this over here is before this swing high here make sense.

You.