trading tutorial helps trading in the commodity market and stock market

Entries and Exits - continued

Entering a trade on a weak down bar during a tight sideways move

Stocks alternate between trending and sideways moves. Entering during the sideways moves gives the possibility for gaining most of the resulting trend.

Bar 'A'

This bar had exceptionally low volume showing that selling pressure had almost completely dissipated. If there is no interest, on the part of the insiders, for a stock to move in one direction, then it will move in the opposite direction.

Bar 'B':

This bar closed near the day's low and took out the gains of the two previous up bars. Had you sold near the close, you would have gained 34% from bar 'A'.

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