L3.2 — Setting Realistic Targets Based on Structure
A structurally valid target is the next significant level in the trade direction where price is likely to encounter resistance or consolidation. In a long trade from a support zone, the target is the next structural resistance — not an arbitrary number of pips, and not the "1:3 target zone" drawn from the entry regardless of what is between the entry and that level.
The honest process: after marking the entry and stop, look at what structural levels exist between the entry and the hypothetical target. If there is a major resistance level at 1:1 R:R that price is very likely to react at, your realistic target is that level — not the 1:3 target beyond it. Taking the partial exit at the 1:1 resistance and trailing the rest is a valid adjustment.
Do not invent targets. Derive them from the chart. If no clear structural target exists at an acceptable R:R, the setup may not be worth taking. The minimum acceptable R:R you require is a personal rule — but it should be defined in advance and applied consistently, not relaxed when a setup looks otherwise attractive.
Get notified when new lessons and content are published.