When trading based on risk/reward, you might prefer to take profit when the stock reaches a certain percentage increase. If you want to make 5% of the money you spent buying the stock (cost basis), then the stock will need to increase by 5% from your entry price. For example, a 1.00 entry will need to hit 1.05 for you to make 5%. If you bought 1000 shares of this 1.00 stock, then you will make 50.00 when the price hits 1.05.
If you prefer to use percentage of your cost basis to determine the price targets, then this update is for you! The updated script will show you price targets set at 1%, 5%, 10% and 20% of the cost basis. The script also allows you to enter a custom percentage, in case you want to know the target price for a specific percentage of the cost basis. If you select ‘Show price targets of cost basis’ and enter an amount greater than 0.0 in the ‘Percentage Of Cost Basis’ field, then the label will show the price target for that percentage.
Other changes:
- Renamed Targets to Price Targets.
- Removed the -1R line, since it was the same as the Stop Loss.