Saturday, December 1, 2012

Trading Plan: Strong support and higher potential, aggressive exit

A support level is defined as price where most buyiers are likely to buy, there are obvious support levels (prior day low, swing low) and "invisible support levels" like todays or last upmove 50% retracement area.

Usually an instrument has a higher potential to go up more points than another instrument if there is more "room" to the upside, e.g. the next reistance area (prior day high, long target) is further away:



exit should always be done with a stop market and not a limit order, so trailing a stop at a target level is better than just exiting:




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