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RESISTANCE
The resistance becomes support at a later time, once a
successful S90/Crossover has
been identified. This is a million-dollar tip, especially if the
level becomes a duplicated
historical S90/Crossover.
SUPPORT
The support becomes resistance at a later time once a successful
S90/Crossover has been
identified.
TRENDS
The trend, when associated with a S90/Crossover, distinguishes
between a false trend
breakout and a true breakout. The false trend breakout allows a
knowledgeable trader to
enter a successful reversal, whereas the true breakout offers
you safety regarding which
direction to trade.
MARKET ORDERS
Market orders are those orders that traders enter based on a
spontaneous decision to
enter a trade. The decision could be based on a signal, a
fundamental announcement, or
even a hunch (which is most likely a mistake).
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POSITION ORDERS
Position orders are usually based on a plan. These are used
often for reversal entries
well in advance of an S90/Crossover strike. Most traders plan a
reversal entry if a gap,
an S90/Crossover, and a Fibonacci level exist in the market that
they can easily observe
well in advance.
PLACING LIMITS
Most traders place limits to make sure profits are taken just
before a target is reached.
As the saying goes, a bird in the hand is worth two in the bush.
This means if you areBasic Trading Skills with S90/Crossovers and Extreme Levels in
the Market 55
profiting and about to hit a level, the market may have to pass
the strike point for you to
obtain the desired exit.
Therefore, if you place your exit exactly on the target, you may
suffer a reversal and
reduced profits—if not a loss. Many traders do not use stops or
understand the need to
lock in profits before walking away from a computer. For
example, if a perfect target is
hit while you’re asleep and the market reverses during the
night, a great profit can turn
into a great loss overnight. This is why it’s so important to
have a clear understanding of
practicing placing limits and stops.
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