Exit Indicators

---

You must have a definitive exit strategy in any market!

Exits consist of money management first. A defined stop loss and take profit is key. Another method is using different variations to a trailing stop as to lock in profit. Two indicators are mainly used for pre-determining TP, SL, and Trailing Stops are ATR and ADR.

 The main differences in these is Average True Range/ATR includes gaps of price in the pip calculation where the Average Daily Range does now. 

Exits also consist of indicators telling you to get out of a trade and take a realized profit or realized loss. Typically indicators that exit an Algo out of a trade are faster or calculate price in a specific fashion. It takes lots of playing around and comparing Return On Investment to Drawdown.

Methods for exiting a trade:

1. Entry Indicator gives an opposite signal.

2. Having an Exit specific indicator.

3. Time elasped Exit. Basing an exit on the end of session, end of day, or after a duration of candles have past and neither a take profit or stop loss has been hit(representing consolidation.

4. Price levels or Supply and Demand Zones. Essentially a previous high or low can be a good target to exit.

5. Decreasing Volume after a significant move.

6. Reaching an ADR high or low for the day. Price struggles to exceed adr high and lows. Many times price will bounce off these levels.

7. A complete decrease in volatility. Represented by ATR values. Or using atr levels by the values of 1 for exits on certain positions.

Have fun and get to testing Team!