trade price response

Definition

Trading strategy which uses information gathered from technical analysis, specifically resistance and support levels. The trade price response method looks at the history of a security, to learn how it reacts at specific price levels. Based on this information, when the security reaches that level again, the trader will take different actions based on how the security moves. For example, if a security fails again to break through a resistance level, the trader may take a short position, but if a security manages to breakout and climb above the level the trader may take a long position.
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trade price trade reference