Why do the stop and the target change every candle?

Question

Accepted Answer

That is the dynamic exit. Both are worked out again on every candle close from the last five candles, and they only ever move your way: as the trade works, the stop steps up behind it and the target steps in. The first stop is three times the room from the entry to the lowest low of the last five candles, under the entry. The first target is three times that room, over the entry. On every close, a higher five-candle low moves the stop up and the target in. They only ever move your way: a trade going against you never widens its stop or pushes its target further off. They show as the green (target) and red (stop) steps on the chart, and the card always shows where they stand now. When to get out.