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withstand one more "charge" by the sellers before the buyers take firm command. |
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You set your exit target at a point either 3 points above the entry point, or 50 percent of the average daily range above the entry point, whichever is greater (see 7 on figure). |
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See Figure 13.10 for the results of the smart buy, which shows the value of patience and staying with your plan. |
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The day opened well below your entry point. Don't worry, you simply wait for the entry point. It finally got there and you entered the trade. For awhile, it pulled back on you, going below your entry point. So you actually were holding a losing trade for part of the day. But it did not pull back to your IPS. You were patient throughout the day and held a slight gain in the position overnight. The next day, your position opened and moved strongly to your exit target, where you took a nice 3-point gain. |
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Figure 13.10
Results of the Smart Buy
Copyright 2000, TradeCast® Ltd. |
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