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Table 3.3: Trading at support level

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In this example we may consider both traders to be fortunate as the market rallied off the early low which gave the Tunnel trader the opportunity to sell at a better price and the FTSE to end up trader the chance to profit on half of his position and limit his eventual loss. But, on the other hand, markets do tend to bounce at support – which is why it is called support in the first place! It is simply that such bounces do not always last for long.

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