When price got to within 2 points of the target, I zoomed in to the 10 minute chart to micro-manage the exit. We got in at 301 and the adjusted target was 310.90. So 2 points from the target is 308.90 which is 7.90/9.90=80% of the desired move. At that point its not a good trade to risk 80% to get the last 20%.
However, there's a better idea than to just exit at 80% to your goal. What I like to do is trail a stop loss just under the low of the previously closed candle on the 10 minute chart. You can see the 309.20 Stop just under the low of the previous candle on the 10 minute chart above, which was saved at about 12:52pm ET. I sent a Tweet announcing the new 309.20 Stop Loss level.
Price continued to rise and I continued to trail the Stop up after each candle closed to 1 tick under the candle low. Eventually the Stop was hit at 309.60 approximately 13:15 ET. I sent a Tweet when the Stop was hit. Here's that image:
Here's how the day ended on the Daily chart:
You can see the little line that marked my last Stop Loss level. I did give up a few more ticks but I also avoided a possible down draft at the close, and also avoided holding over the weekend because we never actually hit the full 310.90 target. The high of the day was 310.70. Only 2 ticks from the target! I'll be patting myself on the back if we go down from here starting next week.
In summary:
(8/28/20 Exit 309.60) - (8/25/20 Entry 301) = 8.60 * $100/pt = $860 profit.
Beautiful win for a Friday afternoon.
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