Continue reading...In the first and second parts of this series I looked at some of the various elements you will need to master if you are to have a chance of succeeding at trading. In this final article, I will run through a strategy I have used in the past to illustrate some of the concepts previously discussed.
The UK stock markets tend to be range-bound, especially on a short-term basis. This strategy looks to buy low and sell high, so it is swing based. It uses the basics of support, resistance and trendlines combined with money management as I?ve discussed earlier.
Look for a test of support or resistance or a trendline that fails to break.
If it tests support and bounces up, then go long and place the stop just under the support level.
If price tests resistance and bounces down, then go short and place...
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