Some friends have not only discussed with me the use of entry patterns but also asked if I could talk about exits as well.

Today, I have arranged for everyone to write about 8 intraday trading exit methods. This article is also a sister piece to the 9 entry patterns. I suggest that you combine these two articles together for better results.

1. Characteristics of intraday exits

Intraday trading requires positions to be closed within the day, with short holding times and fast market changes. The exit methods should be standardized and clear, ideally to the point of mechanical execution, without the need for analysis each time.

Intraday trading may involve operating several varieties at the same time, with a high trading frequency. The exit methods should be as simple as possible, with low execution difficulty. This way, when operating multiple varieties at the same time, it is more organized and reduces the possibility of making mistakes in a rush.

2. 8 intraday exit methods

Method 1: Fixed profit and loss ratio

After the order enters, based on the stop loss space, set a target exit position that is twice (2:1) or three times (3:1) the stop loss space.

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For example, assuming the stop loss space is 10 points, set a profit-taking order when the profit reaches 20 points or 30 points.On the left side of the diagram is an illustration of a 2:1 profit-to-loss ratio. Crude oil forms a downward break structure at the 5-minute level intraday, and after entering the position, the stop loss is set at the previous high point, with a stop loss space of 90 points, and the profit target is set at 180 points.

On the right side of the diagram is an illustration of a 3:1 profit-to-loss ratio. Gold enters the position after standing on the 30-day moving average at the 5-minute level intraday, with the stop loss set at the previous low point, a stop loss space of 56 points, and the profit target set at 168 points.

Points to note:

A: This is the most energy-saving way to exit intraday positions. After opening a position, set the stop loss and take profit, and let the market run on its own.

B: If the market movement is small on the day and does not reach the profit target intraday, you can set the stop loss and take profit, and let the order carry over to the next day.

C: The space for intraday fluctuations is limited, so do not set too high a profit-to-loss ratio, otherwise, it will be difficult to take profit.

D: This method requires the use of fixed stop loss amount capital management rules, such as a fixed stop loss of 1000 yuan per time, and a take profit of 2000 yuan.

The trading system I am currently using employs a fixed profit-to-loss ratio exit method, and the results have been quite satisfactory. I have also shared this on my public account (Eight-Digit Garden), which can be referred to in conjunction.

Method 2: Exiting at important support and resistance levels at the 1-hour or 4-hour level

After entering an intraday trading order, choose to exit at the important support and resistance levels above or below the opening price at the 1-hour or 4-hour level.The chart shows the candlestick chart of spot gold. On the right side, at the 5-minute level, the price breaks above the 30-day moving average to enter a long position. At this time, on the right side at the 1-hour level, the most obvious resistance level is 1891. Set the stop loss at 1891, with a stop loss space of 56 points and a profit-taking space of 140 points, achieving a reasonable risk-reward ratio.

Points to note:

A: Do not choose support and resistance levels that are too large in scale, or those that exceed the daily fluctuation range, as it is difficult to reach them within the day.

B: It is best to identify the positions before the order is entered, and set the stop loss and profit-taking in place when the order is placed, without making adjustments on the fly.

C: Only trade when the risk-reward ratio is at least 1:1 or better.

Method 3: Use turning points to exit

After entering a day order, follow the turning points on the candlestick chart to adjust the profit-taking and exit with the trend. This is an intraday trend-following trading exit strategy.

On the left side of the chart is a schematic of intraday trading for the British pound. After the candlestick breaks above the moving average, a long position is entered. After the market rises and retraces, and then breaks higher, the first turning point is formed, and the stop loss position is adjusted.

Subsequently, the market continues to rise and consolidate, and after breaking through the consolidation, the second turning point is formed, and the stop loss position is adjusted. After that, the market makes a deep correction and breaks below the turning point, and the order is exited.

On the right side of the chart is a schematic of intraday trading for gold. After the candlestick breaks above the moving average, a long position is entered. The market also forms two retracement turning points, and the order is exited at the second turning point.Translation of the given text into English:

A: The profit-to-loss ratio is flexible and not fixed. In fast-moving markets, it is possible to capture a larger space, whereas in a consolidating uptrend, profits may shrink. For example, in the two trades mentioned above, the trend in the pound transaction moved quickly, so a larger profit space was held.

B: There may be instances where positions are held overnight.

C: Each time an exit is made, there will be a retraction of profits.

D: When executing, it is necessary to continuously monitor the market and adjust the stop loss.

Method 4: Use the moving average to exit (exit upon a reverse break of the moving average or a reverse crossover of the moving averages)

After the order enters and the market develops to generate profit, wait for a reverse break of the moving average or a reverse crossover of the moving averages to exit.

The left side of the chart is an illustration of exiting upon a reverse crossover of the moving averages. After entering a long position in GBP/USD, the order is exited when the two moving averages on the chart show a bearish reverse crossover.

The right side of the chart is an illustration of exiting upon a reverse break of the moving average by the candlestick. After entering a long position in gold and holding the order, wait for the candlestick to close with a reverse body that breaks through the moving average, then exit the order.

On the left side of the chart, where the moving averages cross, I use EMA60 + EMA30. On the right side of the chart, where the moving average is pierced by the candlestick, the parameter I use is EMA60.Translation of the provided text into English:

**Method 5: Exiting with a Reverse K-line Structure**

After the order is entered, exit when a reverse 1-2-3 breakdown structure appears at this level. For long positions, exit when a bearish 1-2-3 pattern emerges; for short positions, exit when a bullish 1-2-3 pattern emerges.

In the chart, after the British Pound crosses above the moving average, the order is entered. After the order is profitable, continue to hold the position until a reverse 123 structure appears above. The stop loss is set at 25 pips, and the profit is 78 pips, resulting in a reasonable risk-reward ratio.

**Points to Note:**

A: It is necessary to continuously monitor the market during execution, and manually operate when a closing signal appears.

B: Each time you exit, there will be a retraction of profits.

Please note that the translation is done to the best of my ability to reflect the original meaning in English, and financial trading terms are kept as they are commonly used in English to maintain their specific meanings.Method 6: Exit using large-scale reversal candlestick patterns

After entering a position at a smaller time frame, exit when a reversal candlestick pattern appears at a larger time frame across different cycles.

For example, if you enter a position on a 5-minute chart, and after making a profit, a reversal candlestick pattern appears on the hourly chart, close the position.

The frequency of reversal candlestick patterns at this level is too high, which is not conducive to holding positions. Additionally, entering at a smaller time frame and exiting at a larger time frame with a reversal candlestick pattern, the combination of different time cycles is beneficial for a high reward-to-risk ratio.

The chart shows the candlestick chart of the British Pound against the US Dollar. On the left side of the chart is the 5-minute level, where the order entered and held the position until a standard reversal candlestick pattern appeared on the hourly chart, at which point the order was exited. The stop loss was set at 25 pips, and the profit target reached 110 pips, resulting in a very reasonable reward-to-risk ratio.

Points to note:

A: The difficulty of executing the operation is low. For example, when exiting according to the hourly chart level, you can simply observe the candlestick pattern when the hourly candlestick changes.

B: There will be some profit given back when exiting.

C: The time frames that can be used are the 1-hour or 30-minute reversal candlestick patterns. For aggressive 1-minute trading, you can exit at the 15-minute level.

Method 7: Exit by reducing positions in batches

After entering a position, instead of closing all at once, reduce the position in several batches to manage risk and lock in profits. This strategy can be particularly useful in volatile markets where prices may fluctuate significantly, allowing traders to take profits at different levels and reduce exposure as the market moves.After entering a position with an intraday order and making a profit, close the position in batches.

Partially closing the position after making a profit can help lock in gains and is beneficial for the trader's mindset, facilitating the execution of trades.

The diagram shows a schematic of intraday gold trading, using two moving averages for exit signals when they are breached in the opposite direction.

After entering a long position and making a profit, when the market breaks downward through the black moving average, close half of the position. Then, as the market continues to develop and breaks downward through the red moving average for the second time, close the remaining half of the position.

The moving average parameters used in the diagram are EMA20 and EMA60.

Points to note:

A: Different closing strategies can be used for closing positions in batches, or the same strategy with different parameters can be used for closing, such as in the example above, where moving averages with different parameters are used for exiting.

B: It is reasonable to close intraday trades in two or three batches.

Method 8: Exit following a trendline break in the opposite direction.

After entering an intraday trade, when the market forms a retracement high or low, connect these highs and lows to form an ascending or descending trendline, and use the market breaking through the trendline in the opposite direction as the exit point.The diagram illustrates a 5-minute long position in spot gold, using a trend line to exit the position.

After the candlestick stands above the moving average and enters a long position, connect the starting point of the trend and the retracement point of the trend to form an upward trend line. As long as the trend remains above this line, hold the long position until the candlestick closes in the opposite direction below the trend line, at which point close the position.

Points to note:

A: The exit is determined by the candlestick closing below the trend line.

B: During the execution, the trend line should be simply adjusted to follow the trend, allowing the trend to be closer to the actual market movement.

These are the 8 methods for intraday trading exits. Lastly, let's discuss some points to consider when exiting intraday trades.

(1) Be mentally prepared to let go. Intraday trading is about short-term gains, relying on the advantage of win rate and risk-reward ratio. Do not be reluctant to see a big trend after closing your position and arbitrarily adjust your exit strategy.

(2) There is no perfect exit; do not be fixated. Every exit method has its pros and cons. No exit method can sell at the highest point or buy at the lowest point. As long as our exit method and trading system can achieve overall profits, this is a successful trade.

(3) The direction of long and short positions is relative, so many exit structures are actually similar to entry structures.

(4) The exit methods discussed today should be integrated into your own trading system. Before engaging in live trading, it is essential to do backtesting and simulated trading to become proficient with every detail. Only after confirming that this method is effective for you and can ensure execution should it be applied to real trading.