13 Questions
What action should be taken if the price breaches the support level after entering a buy trade?
Manually exit the trade and take a loss
What was the initial reason for entering the buy trade?
Expectation of the support level holding
Where should the stop loss be placed in relation to the support level?
Below the support level with some breathing room
Stop loss is going to be down here with some ______ room
breathing
Should we be in a buy trade if prices breached our support?
False
Is the stop loss going to be down here with some breathing room?
True
The initial reason for entering the buy trade was because the support would hold.
True
What should be the aim of the buy trade?
Aiming for the resistance level
What should be done if the price breaches the support level after entering a buy trade?
Manually exit the trade and take a loss
What is the next candle's expected action after the price breaches the support level?
Bust through the support with force
True or false: The only reason for entering the buy trade was the belief that the support would hold?
True
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?
True
True or false: The aim for the buy trade is to reach the resistance level?
True
Test your understanding of support and resistance in trading with this quiz. Learn to identify when to sell at resistance and when to buy at support, and explore the two trade types for support and resistance. Sharpen your knowledge of essential concepts for successful trading.
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