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Old 05-06-2007, 05:17 PM
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Re: The "Flip" Trade (support and resistance changing roles)

Walter - I suppose, I would look at like this:

On counter-trend trades, consider getting some/all off after an acceptable move in your direction knowing that you are going against the flow. There's money to be made here, no doubt, but my personal opinion is that you cannot get greedy in counter-trend trades.

On trend trades, I would consider allowing the trade some more room to work for larger profit potential. I personally have found some great success with WRB's, so perhaps that's a consideration.

Of course, if you can scale out as well, that's another component for consideration. I am a big fan of scaling out if your account size and risk tolerance allows.

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