Stock Price Target Projection

By knowing how to project a stock price target you know
ahead of time where to take some profit.


First advantage allows you to figure your risk reward, before you


decide to take the trade. Usually you want at least a 2 to 1 advantage. That is if your system is correct 45 to 55 % of the time...you need more if your system is correct less often.

The second big advantage to knowing your stock price target before hand....is the exit itself. By having an accurate way to make a stock market projection you can place your exit order ahead of time. Then when price reaches that point you are automatically taken out with a profit.

The following stock projection methods work extremely well when swing trading....often you are out of the trade in two days. I've personally used them thousands of times over my trading career.

Remember, before you can pick a stock price target, you must have a trading system. It must be a system that can identify the trend and at the same time the stock must be ready to move.... Here is the system I use.. Stock Signal Pro
It's accurate, easy to use and updates prices with the click of your mouse.

With Stock Signal Pro you will have one of the best stock trading software tools I've ever had the pleasure of using.

So let's get started The first stock price target I use works well when a previous top has been make and there has been a sell-off from the old highs.

B marks the Buy Spot and T marks the Target

The Buy Signal came the day after the low. and in two days the stock price target was within a couple tics of the old high. Please keep in mind, that when I say the old high.... in actual trading I place my exit order a little below the old high....somewhere in the area of .25 cents or a quarter of a point.

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Here is my absolute favorite stock market projection method that works whenever their is a gap above where you plan to enter.

B marks the Buy Spot and T marks the Target Price

In reality there are two targets here, the first at the high that occurred 3 days before the low. The second is the Gap. Often when you have two targets, price will pull back for a day or two before after hitting the first target, Then go on to your second stock price target.

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Here is another chart.... showing by favorite stock market price projection technique.

A gap covers more than just one precise price. The gap may be .50 from the bottom to the top. So where exactly should you place your exit order to take profit.

The area that is hit almost 100 percent of the time is the lowest part of the gap. As you gain more experience with using gaps as stock price targets you can modify your exit according to your experience.

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