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Medium-term (STF) and long-term (RTP) trade on a breakout

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  • Medium-term (STF) and long-term (RTP) trade on a breakout

    Medium-term (STF) and long-term (RTP) trade on a breakout

    The trading rules for STF are the same as for CTF. The main difference, apart from the time of maintaining the position, and the magnitude of the trend range, will be signals that are taken into account when opening a position, as well as for setting stop-loss order and trailing stop levels. The signal to open a position at STP is the closing of the trading session (day) above (below) the resistance (support) levels drawn at the upper (lower) prices of the previous days (Figure 2.6). Closing a position with a loss (stop-loss) will be carried out when the trading session (day) closes on the opposite side of the channel, or (with a strong market movement) at the estimated level of possible losses. The same applies to closing a position to maintain current profit in the event of a market reversal (trailing stop). In case of an accident, positions are opened at the level of the third or fourth day (depending on the investor's preferences) after breaking through the channel boundaries. The rules for placing a stop-loss order and trailing stop will be similar to the rules for an STP.
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