Clear exit signals are essential for maintaining a disciplined trading strategy. They help traders avoid unnecessary losses by providing predefined thresholds for taking action. Moreover, exit signals enable better performance analysis, as traders can review their trades against set criteria. Over time, consistent application of exit signals contributes to improved profitability, reduced risk exposure, and more reliable outcomes. Regularly evaluate your exit signals to ensure they remain effective. Use historical data and performance reviews to fine-tune your criteria over time.