Guys, This is why I don't take multiple profit targets. Most harmonic traders will take targets at the 38.2% Fib level, and the 61.8% Fib level and maybe even a third profit target at the 100% level.
I ONLY take at the 38.2% Fib level. And I take everything off at that point.
The Reason:
In my testing,(backtesting, demo trading and Live trading) I found that more patterns will hit the 38.2% level and then reverse before hitting the 2nd profit target. Moving down all the way to at least the original entry position. Not all of them, just the majority.
So instead of me only taking half of my profit, I am taking all of it. Yes I have the potential of making more money IF price action were to hit the 2nd profit target, but I find that 68% of the time, nearly 70% of the time, it never hits the 2nd target without first reversing and going back to the original entry.
And if you are taking multiple entries, you will usually roll your stops up to entry level once it hits the first target. Then you get stopped out before it returns back up to hitting the second profit level IF it goes back up.
I ONLY take at the 38.2% Fib level. And I take everything off at that point.
The Reason:
In my testing,(backtesting, demo trading and Live trading) I found that more patterns will hit the 38.2% level and then reverse before hitting the 2nd profit target. Moving down all the way to at least the original entry position. Not all of them, just the majority.
So instead of me only taking half of my profit, I am taking all of it. Yes I have the potential of making more money IF price action were to hit the 2nd profit target, but I find that 68% of the time, nearly 70% of the time, it never hits the 2nd target without first reversing and going back to the original entry.
And if you are taking multiple entries, you will usually roll your stops up to entry level once it hits the first target. Then you get stopped out before it returns back up to hitting the second profit level IF it goes back up.
Trade closed: target reached