Tham khảo tài liệu 'the master profit plan your 5-step trading plan workbook by vadym graifer_5', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 122 PART TWO Trading System is a good idea because this level doesn t show good support. It cannot serve as a reliable indication of weakness if this level is broken. Essentially it all comes to the dilemma of Do I let the stock hit the trailing stop and give up a significant portion of the current paper profit Or do I take the profit now and kill the chance for a bigger move That s where we use a confidence level placing it at . If this level is broken on the downside we change our original plan. While our trailing stop is still in place our exit strategy is now to sell our shares on the first worthy bounce. If the confidence level is broken we don t expect the stock to go to new highs anymore and any bounce between the price range 21 is to be used to exit our remaining shares. CHAPTER 12 Trading Setups In this chapter we discuss setups that we apply in our everyday trading. They will look familiar to an experienced trader although there is a certain spin on classic setups. For instance the well-known cup-and-handle formation is tweaked somewhat for intraday trading. Also such a commonly known setup as the ascending descending triangle has a certain twist that we describe. Most of our setups with the exception of capitulation and euphoria are trend-continuation formations. Capitulation and euphoria are the only trend-reversal setups in our arsenal. But as you know from the previous discussion there are many ways to trade the same setup. If a trade fails as a trend continuation it could be faded for a trend reversal. This approach is in keeping with what we discuss about the role of setups. Although they do not predict the direction itself they show the signs of direction and if the signs tell us that upward movement has failed then a short could be justified. Breaking of the stop level indicates failure. Breaking of the stop level before the setup is triggered invalidates the setup. This way we can define a stop level as a level for fading the .
