Targets & Extensions
By the end, you can treat measured targets as objectives to watch, not guaranteed destinations.
Mile markers on a road. A target is a marker where you might expect traffic — a rest stop where people pull off (take profit). It tells you where reactions are likely, not that you'll definitely arrive.
Targets and extensions (for example LuxAlgo's target 1 / 2 / 3) are measured objectives projected from a move — prices where profit-taking or reactions often cluster. They're useful for planning where to take profit and where price might stall.
They are places to watch for a reaction, not promises. Price owes you nothing — a target is where you'd *monitor for* profit-taking, not a guarantee price reaches or respects it.
“Target 2 is on the chart, so price will definitely get there.”
“Target 1 is where profit-taking often shows up. I'll plan my exit around it and watch the reaction — the market owes me no target.”
A measured target (e.g. target 1/2/3) is best treated as…
- Targets are measured objectives, not promises.
- They mark where profit-taking and reactions often cluster.
- Plan exits around them; watch the reaction, assume nothing.
Up next — Now put every level together with one repeatable question. Next: the level reaction drill.