Today's candle is a Bullish candle indicating the price is ready to move higher.
At this point, it is no longer wise to continue to hold a Short position. It is now time to take profit in the last half of the open trade to close out the complete Short position. The question now is should I take a Long trade? The answer is NO because the trend continues to be downward. The next question would be if the market remains in a downward trend why should I not continue to hold Short? The answer is that the trend could continue to move higher to end the downward trend.
So how do we make trade decisions based upon this candle?
In a situation like this, I believe proper money management would be to close out my Short trade and wait for a new trade opportunity.
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At this point, it is no longer wise to continue to hold a Short position. It is now time to take profit in the last half of the open trade to close out the complete Short position. The question now is should I take a Long trade? The answer is NO because the trend continues to be downward. The next question would be if the market remains in a downward trend why should I not continue to hold Short? The answer is that the trend could continue to move higher to end the downward trend.
So how do we make trade decisions based upon this candle?
In a situation like this, I believe proper money management would be to close out my Short trade and wait for a new trade opportunity.
PLEASE GIVE ME A THUMBS UP if you agree with this trading tutorial to help me become a TOP AUTHOR. Also please leave a comment on how I can improve the tutorial.
Have an analysis Question? Feel free to send me a private message I enjoy sharing.
