One of the many trading challenges I had and still have to an extent is to choose an exit. This has become even more important than just leaving a lot of money on the table since a lot of traders are trading through the so called prop shops where there is a trailing draw down. You can blow an account with a trailing draw down if you are making profit but are continually exit after the price pulls back from a peak profit.
One tool I use is the info I can get from the order flow on a footprint chart.
The chart below shows a trade I took today near the beginning of the European session for NQ. The bars are renkos to get rid of some noise and to give a little more smoothness than range bars.
If you look at the bar that the left red arrow is pointing to, you can look down and see that the bar had an extremely high volume in comparison with the previous bars. The other feature of that bar that is important is that the POC of the bar is in the wick. So we have a high volume bar with what must be a high volume POC. Now when you look at the right arrow pointing to the down bar that ended that swing, you can see that the bar touched the POC of the bar I have just described and that the POC stopped the up move. So watching my long position as it came up to that level it was clear that the POC was stopping the up move. You could play it a number of ways depending on what was important for you and your trading style: get out so the trailing drawdown is not invoked with the idea to re-enter if the POC broke, or if you held multiple lots you could scale out of some here hoping for the POC to break and trade it up to one of the bands above.
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