“Buy high, sell higher.”
It is not enough to know how to identify a good opportunity.
You can have the best setup ever but if you don’t know when to buy or sell, you will end up nowhere.
In this lesson, we will go through a simple framework to buy and sell.
As trend followers, we always want to buy new local prices high. This is called a Breakout. After our chart pattern (typically the cup and handle) and a contraction of volatility, we will enter into position when the price move above the resistance level with increased volume.
Illustrative charts:
Bear in mind that we are NOT in the business of anticipating a breakout. Instead, we want to witness a first candle breaking above the resistance point. And ONLY THEN, we will consider entering into a position.
Example using Cerinnov Group:
-We wait for the first candle above the resistance level.
-And then we can place an order to enter into a position above the last daily close.
