FIGURE 5.6 Defining Targets or Exits on the AUDUSD Bullish Highway

Trading a trend requires that you constantly look ahead and target lev-

els to overcome. The purpose of this rule is to increase confidence in the

trend by providing realistic goals, managing risk by providing definable risk

levels, and taking advantage of profit-taking levels. The rule also allows the

trader to stay in synch with the trend’s step-by-step progression. Failure to

follow this rule will lead to increased uncertainty and increased fear, and

will likely lead to traders’ exiting trends before their time.

Follow the road ahead. Reach the exits along the way and attack the

currency trends one realistic and meaningful step at a time.