Mastering Support and Resistance Trading Quiz
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Questions and Answers

What action should be taken if the price breaches the support level after entering a buy trade?

  • Wait for the next candle to confirm the breach
  • Manually exit the trade and take a loss (correct)
  • Move the stop loss closer to the entry point
  • Double the position to average the entry price

    • What was the initial reason for entering the buy trade?

  • Expectation of the support level holding (correct)
  • Anticipation of a price breakout
  • Belief in the resistance level
  • Desire to test the stop loss strategy

    • Where should the stop loss be placed in relation to the support level?

  • Below the support level with some breathing room (correct)
  • Constantly adjusted based on market sentiment
  • At the entry point of the buy trade
  • Above the resistance level for safety

    • Stop loss is going to be down here with some ______ room

    <p>breathing</p> Signup and view all the answers

    Should we be in a buy trade if prices breached our support?

    <p>False</p> Signup and view all the answers

    Is the stop loss going to be down here with some breathing room?

    <p>True</p> Signup and view all the answers

    The initial reason for entering the buy trade was because the support would hold.

    <p>True</p> Signup and view all the answers

    What should be the aim of the buy trade?

    <p>Aiming for the resistance level</p> Signup and view all the answers

    What should be done if the price breaches the support level after entering a buy trade?

    <p>Manually exit the trade and take a loss</p> Signup and view all the answers

    What is the next candle's expected action after the price breaches the support level?

    <p>Bust through the support with force</p> Signup and view all the answers

    True or false: The only reason for entering the buy trade was the belief that the support would hold?

    <p>True</p> Signup and view all the answers

    True or false: If the price breaches the support level after entering a buy trade, one should manually exit the trade and take a loss?

    <p>True</p> Signup and view all the answers

    True or false: The aim for the buy trade is to reach the resistance level?

    <p>True</p> Signup and view all the answers

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