TP (Take Profit)

### What a TP actually is Your take profit is a resting **limit order** sitting on the far side of your entry. The SEC's description of a limit order is worth internalising: it is an order to buy or sell at a specific price *or better*. A buy limit can only fill at your price or lower, a sell limit only at your price or higher. If the market never trades there, nothing happens. Read that again, because it contains the entire trade-off. A limit order protects your **price**. It does not protect your **fill**. Nothing in the market is obliged to come and take it. ### Where the target goes in our system The target is not a round number, and it is not a fixed multiple pulled out of the air. It is **weak structure**, a weak high or a weak low, on the setup's timeframe class. - MTF setups target 15M, 30M or 1H weak structure. - LTF setups target 1M, 3M or 5M weak structure. A weak high or low is a level that looks likely to give way rather than hold. Those levels act as magnets. They are where price is trying to go, which is what makes them targets rather than guesses. Cycle the timeframes in your class and pick the weak level price is genuinely reaching for. ### The 0.5 pip rule, and why it is not fussiness Within 0.5 pips of TP, be ready to close immediately. No waiting for confirmation. Beginners read that as a nitpick. It is actually the direct, practical answer to the limit-order problem above. Price can push to within a fraction of your level, never trade *through* it, and roll over. On the chart it looks like your target was hit. In reality you are still in the trade, and now you are handing back an open profit you already earned. Being ready at 0.5 pips means you take the exit the market is offering, instead of insisting on the exit you wrote down. ### The other half of that rule The 0.5 pip rule cuts in one direction only. More than 0.5 pips from target, you do not exit early on a hunch. An early exit needs two things together: a rejection candle on your execution timeframe **and** a model forming against your direction alongside it. Both, not one. A rejection candle on its own is not a reason to bail out of a trade that has not arrived yet. The 0.5 pip rule exists to remove hesitation when you are nearly there. The two-condition rule exists to stop you talking yourself out of a trade when you are not. Source on order mechanics: [SEC, Types of Orders](https://www.investor.gov/introduction-investing/investing-basics/how-stock-markets-work/types-orders).