Predicting price targets with the Rule of Seven

摘要

Fear and greed are always poised to derail an otherwise viable trading plan. You are most vulnerable to these dangerous emotions, however, when you're already in a position and it comes time to exit. To combat their effect, technical traders employ an array of tools, most designed to determine some form of trading stop.rnIt's useful in these situations to have an idea of how far a move will go. A price target helps abate fear and greed. If a trade is entered and the trader determines there is a 95% probability price will achieve a certain target, this will help the trader hang on and get out when necessary.