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buy high at resistance OR ??

Discussion in 'Technical Analysis' started by ajaysinghchand, Jan 25, 2013.

  1. ajaysinghchand

    ajaysinghchand New Member

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    dear shabbir,

    firstly let me tell you that it has been really fascinating and revealing on reading your ebook.
    i have been trying to follow this blog and also sometimes contributing, it has been very educative.

    this is something which is bothering me

    i feel trying to buy in a uptrend at a resistance when the stock is breaking out of the previous high always falls down to a support level which is higher than the previous highest low and then it starts to build up again. Would it not always be better to at these sp levels as against the breakout pt which would be way up, even the SL would be much smaller.

    your views pl
     
    ajaysinghchand, Jan 25, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    Yes true but then buying above the Resistance means you buy with less margin but more convincingly.

    Once you are confident then you can buy based on anticipated breakout pattern
     
    shabbir, Jan 26, 2013
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