USING SUPPORT TO SET TAKE PROFIT:
The chart below shows an example of how support can be used to take profit when you have a short position and the market is moving down in your favour:
1. Short entry
2. Prior area of support
3. Profit target set at the support level
As you can see below, after the trade is entered, the price moves downwards to a level of support. At this point the price struggles to break below the support level and may even reverse.
In this example, you should look to take profit where the price first reaches the level of support.
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