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Buy Low, Sell High Strategy But what is Low and High

Buy Low, Sell High Strategy But what is Low and High
Buy Low, Sell High Strategy But what is Low and High

Buy Low, Sell High Strategy But what is Low and High? in this article well talk about buy low sell high but what is low and high stay tuned hatred is a very warm welcome to you so weve all heard this phrase right you buy low you sell high sounds great in principle if we do that every day we would be billionaires but how do we define low and how do we find define high because one persons perception of the market and another persons perception of market are completely different one guy might think its a long one go I think theres a short one guy might think its high one guy my think its low how do we know whats low whats high well do you know what we use good oldfashioned support and resistance okay now I wont go into finer details of the basics of support resistance dont love article on that go and check it out and if you havent subscribe to consider doing so to the channel but support resistance so what do I mean by that sounds simple were lets look at it so for example I would say okay buy low sell high we need something the market to tell us what is perceived as low so we are an uptrend chugging along an uptrend and we want to buy low obviously were probably not going to get a chance of buying it back here against how do we define low in this example low is going to be when weve pushed down is that low we dont know yet weve maybe found a little bit of buy there but is it enough to have a stab at it probably not lets say now it goes and it touches it again and pushes off that now that support level can be defined reasonably with reasonable confidence as low and assuming now were going to have high how do we define high where is it run out of steam yes we might just get a vshaped reversal of course but lets say we do this we kind of congested a little bit we keep pushing it are banging our head against that resistance level theres our high level so we buy low and we sell high and vice versa if were in a downtrend were doing the same thing so we are ultimately letting the market dictator was what is low and what is high we we all have our own perceptions here we might say you know what lo is down here but if the market never gets there youre not gonna take the trade we might say you know what low is low is here but if the market goes through it and then find some support lower with the rock so the idea is letting the market this dictate to us exactly where this low or high point may be now thats a trending market and thats a little bit different but most the time you know if we look into buy alone so high were gonna look at some kind of range environments and markets ranging its pushing back its pushing lowers ranging like this you know we literally war then just draw a horizontal support lines very basic very simple across the top here resistance across the top here support now am I saying to you you should be going long every time it touches that and sure when its own touch that no you know I believe that we can use that as a filter and we can say hey when it gets to within this kind of fuzzy zone of area do we want to be looking for Longs and do we want to be looking for sure so yes we do we can define this then as high and this then as low and then add an extra layer of triggering sweet you know just blindly going sure the top and in it whilst in theory it sounds all very well and youll probably get textbook to say look you just take the range in you go show the topic along at the bottom by low so high hey great off you go and trade you and I both know in the real world that doesnt happen like that often youre gonna get fake outs youre gonna get you know half from going half down here and pushing back up again and faking outside you know its never generally nice and clean and simple you know as a weak as we see in the textbook so we just use as a guide we say okay we want to buy low sell high high is defined as what the price has struggled that before low is defined as what the price has struggled up before to the downside lets use that area and that could be as thick as we want you know as much risk as we want to take if we dont take much risk we might have them might that narrow might have to come right into that level before we get involved in it if we prepared to take a little bit more risk a little bit more heat we might as well widen it up a little bit but expecting a bit more heat on the train and then the final thing guys is if weve got a horizontal support resistance I rubbed our guy my we can also have trend lines and channels so if we have price moving up price moving up price maybe up in an uptrend and weve got our going to stand to kind of trend lines on here or channel lines on here or have we want to define them we then have a dynamic support and resistance so this then becomes our low and this end becomes our high and it kind of looks a bit odd in theory because you say well actually if this was high here a one week later that now becomes low well thats it because thats the point guys we are trying to a match the market conditions rather than strictly saying well thats low and having that all over here and having this constantly push on an uptrend and youre never going to get that you know for years and years and years Im missing out on the whole thing it becomes dynamic you kind of extrapolate how are you or you or you push that onto the chart and you say well if you are in a training environment were on a challenging environment Ill use these is high and then the same thing is live with the with the horizontal support resistance we just put our fuzzy Zone in and we just say okay within this zone is where were gonna look for shorts or not now okay I said shorts here but in reality wed probably filter out all shorts completely and say hey all I want to do in this environment is buy low sell high dont go sure so I want to buy low Ill are fuzzy zones the downside here on the model that I would define is low and I will look for Longs with whatever that may be were bullish engulfing candlestick is it a wick that pushes through here is it a little dollar bottle and intraday chart whatever you know the kind of stuff were looking for but within that zone but within the trend so we talked about before guys stacking that layers of edge and this is why we kind of define this buy low sell high simplicity but in a kind of real trading environment with real charts with real markets allows us hopefully to at least bring those boundaries in and our trade and give us a little bit more structure to the train to find the risk a little bit better all right guys sounds like this kind of stuff then subscribe the channel if you havent yet or consider doing so away from our articles from being yet other traders take care keep your risk measure Ill see you in the next one goodbye you

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