So you've thought hard, developed a trading plan, entered a trade -- and the results are falling in line with your analysis. Before you pat yourself on the back for a job well done, though, you need to make sure you execute your planned exit strategy.
Exiting the position too early means you leave money on the table, and holding on too long sees your hard-fought gains vanish tick by tick (or pip by pip, for forex traders).
You have stops in place to protect you if the market turns against you. But how do you know the right time to exit when price action goes your way?
While no forecasting method guarantees that you buy at the absolute low and sell at the absolute high, Elliott wave analysis -- and, specifically, Fibonacci relationships between waves -- can help you identify high-probability price targets.