Entering a Trade in an Uptrend
Student’s Question:Here's my resistance line. But I am still confused as to when should I enter the trade and when should I exit the trade according to the chart I posted?Power Course Instructor’s Response:Keep in mind that in anuptrend you want to buy at support. In adowntrend you want to sell at resistance. That way, you have the daily trend (market momentum) helping to 'push' your trade.So in a downtrend, the trendline (resistance) would be drawn above price action while in an uptrend the trendline (support) would be drawn below price action. Trendline support is represented by the red line on the chart below…
In this case, you are looking for an opportunity to buy at support…in the “buy zone” on the chart.
As far as profit goes, it can be taken at the next level of resistance or by employing a simple 1:2 Risk Reward Ratio.
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