What is a Management Point Area?

A management area is an area on the chart where a trader can manage a position they are holding by either taking partial profits or locking in trade at break even on the way to a long term target area. In other words, it is a area where a trader can reduce or remove risk of a trade held on the way to a long term target area.

A trader benefits from using these areas as areas to manage a position by reducing or removing risk while holding for a longer target.

In the video below I answer what the terminology means when I mention it in the reviews, the basic concepts of use as a management option, as well as an example on EURJPY. While the example in the video is shown on EURJPY, the same process can be applied to other markets.

Above Video – Video explaining what is a management point area in the market

eurjpy 4 hour management point area example

Above – EURJPY 4 Hour – click chart screenshot for larger view of this market

Side Note: How to evaluate risk to reward in relation to management point areas and target areas is an aspect that I go over in detail in The Candlestick Training Series.

About Timon Weller

Timon Weller is the professional Trader behind the blog Forex Reviews as well as a Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Ali Senejani says:

    Hi Timon. Great post and thank you for posting it. It makes it easier for us when we go through your weekly analysis.

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