Take Profit

A take profit is the mirror of a stop loss: a level at which the trade closes automatically with a profit. It enforces discipline by removing the temptation to hold winners too long, and pairs naturally with a stop loss to define the risk-reward ratio at entry. Take-profit placement is typically driven by support/resistance levels, prior swing points, Fibonacci extensions, or a fixed multiple of the stop-loss distance (e.g. 2R or 3R).