Dear followers and students!
Let’s analyze an important trading strategy based on the chart provided. Let’s assume that we entered the market at the first circle point (as shown in the chart). This is our initial entry point during the beginning of the market rally. Now, here’s the key: we should secure our profits by closing the trade at the second circle point, where the market is showing signs of slowing down or consolidation. This ensures that we lock in our gains without risking a reversal.
Once we close the trade at this second point, we can look for another long entry if the market resumes its upward trend. However, at this point, we need to be more cautious and vigilant. Here’s why:
• If the market pulls back to the midpoint of the previous market rally (the midpoint of the recent upward movement), we should exit the trade immediately to protect our profits.
• If the market does not pull back and instead continues its upward momentum, we can enjoy guaranteed profits from our previous position while multiplying the gains from the new entry.
By following this strategy, you can effectively manage your trades, minimize risks, and maximize profits. Always monitor the market behavior at key levels and adjust accordingly!