Targets define where a trade is complete. They convert structure into a planned exit and prevent decision-making from drifting under pressure. A target is chosen before entry and remains stable throughout the trade unless structure changes meaningfully.
What a Target Represents
A target marks a logical point of completion. It corresponds to a structural objective that price is likely to interact with based on current context. When reached, the trade has fulfilled its purpose. Targets anchor exits to logic rather than emotion.
Targets Are Chosen Before Entry
Targets are defined alongside the stop. Once stop and target are known:
- reward becomes measurable
- expectancy becomes assessable
- trade quality becomes evaluable
If a target does not justify the stop distance, the trade does not qualify.
Structural Anchoring
Targets are anchored to observable structure. Common anchors include:
- prior swing highs or lows
- range boundaries
- volume profile levels
- VWAP and anchored VWAP interactions
- measured moves derived from recent structure
- areas of prior acceptance or rejection
Targets align with where opposing participation is likely to appear.
Reward Relative to Risk
Targets exist in relation to the stop. Reward must compensate for risk taken. This relationship determines whether repetition is viable over time. A favorable reward-to-risk relationship is required before execution.
Single vs Multi-Target Structure
Some trades complete at a single objective. Other trades allow partial exits followed by extension toward a secondary objective. Multi-target structures are used only when context supports continuation beyond the first objective. The structure of the trade determines the exit plan.
Target Stability
Targets remain fixed during execution. They do not move in response to discomfort, impatience, or temporary fluctuation. Adjustments occur only when structure evolves and presents new information. Stability preserves discipline.
Time and Target Interaction
Targets imply timeliness. If price fails to progress toward the target within a reasonable window, information is revealed. The trade may be exited early based on structure rather than waiting passively. Time supports decision quality.
Completion and Exit
When a target is reached:
- the planned exit is executed
- the trade is considered complete
- outcome is recorded without interpretation
Completion closes the loop cleanly.
5C Mantra
Define the exit before entry. Anchor reward to structure. Let completion be enough.