Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
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POINTS TO REMEMBER

To ensure success, you should remember the following points:

  • A security’s price represents the fair market value as agreed between buyers (bulls) and sellers (bears).
  • Changes in price are the result of changes in investor expectations of the security’s future price.
  • Support levels occur when the consensus is that the price will not move lower. It is the point where buyers outnumber sellers.
  • Resistance levels occur when the consensus is that the price will not move higher. It is the point where sellers outnumber buyers.
  • The penetration of a support or resistance level indicates a change in investor expectations and a shift in the supply/demand lines.
  • Volume is useful in determining how strong the change of expectations really is.
  • Traders’ remorse often follows the penetration of a support or resistance level as prices retreat to the penetrated level.

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