predictive tp and SL for trading

This trading strategy is designed to help you follow the dominant price direction and trade with clearly defined entry, Stop Loss, and Take Profit levels. It combines directional candle signals with the strength of the trend measured by a 14‑period DMI (Directional Movement Index).

On the chart, the script displays a prediction label under each candle, as well as horizontal levels and labels for SL and TP. These visuals are meant to show your trade plan directly on price, so you can focus on execution rather than raw calculations.

How to Buy
Wait for a clear BUY condition:

The prediction label below the candle shows a bullish bias (for example, mainly green wording or “up” bias).

The 14‑period DMI confirms an active uptrend:

The +DI line is above the -DI line.

ADX (the trend strength line within DMI 14) is at a level that indicates a meaningful trend, not a flat or choppy market.

Once these conditions are met at the close of the signal candle:

Use the closing price of that candle as your reference entry for a long position.

Look at the levels marked on the chart:

The SL label marks your Stop Loss level below price.

The TP label marks your Take Profit level above price (TP1 by default, TP2 if you choose it in the settings).

Execute the BUY:

Open a long position after the signal candle closes.

Set your Stop Loss exactly at the SL level indicated by the script.

Set your Take Profit at the TP level currently selected:

By default, the strategy uses TP1 as the main target.

If you switch the input to TP2, the system aims for a more distant target with higher potential reward but a lower hit probability.

Manage the position:

As long as DMI 14 continues to support the uptrend (+DI above -DI and ADX not collapsing), let the trade run until SL or TP is hit.

If you see the DMI structure weakening (ADX drops sharply or -DI crosses above +DI), you may choose to close the position early or tighten your risk, even if TP has not yet been reached.

How to Sell
Wait for a clear SELL condition:

The prediction label under the candle shows a bearish bias (for example, mainly red wording or “down” bias).

The 14‑period DMI confirms a valid downtrend:

The -DI line is above the +DI line.

ADX is at a level that signals a real trend, not just random noise.

Once these conditions are met at the close of the signal candle:

Use the closing price of that candle as your reference entry for a short position.

Check the labels on the chart:

The SL label marks your Stop Loss level above price.

The TP label marks your Take Profit level below price (TP1 by default, or TP2 if selected).

Execute the SELL:

Open a short position after the signal candle closes.

Place your Stop Loss at the SL level shown by the indicator.

Place your Take Profit at the chosen TP level:

TP1 for a nearer, more conservative target.

TP2 for a more ambitious trend trade.

Manage the position:

Keep the short open as long as DMI 14 supports the downtrend (-DI above +DI and ADX remains healthy).

If DMI starts to show signs of reversal (ADX drops or +DI crosses above -DI), you can protect profits by exiting early or adjusting the position.

Risk and Trade Management
Every trade is paired with a predefined Stop Loss and a single active Take Profit level, making the risk–reward profile visible at a glance.

Position sizing should be aligned with your account risk tolerance (for example, risking 1–2% of equity per trade based on the SL distance).

The goal of combining the directional prediction labels with DMI 14 is to keep the decision process simple: wait for alignment between the price bias and the trend strength, then follow the SL and TP levels drawn on the chart.