| Hi fry,
You have a 2 dollar upside and a potential 4 dollar down side.
No brainer...No trade. at least 3 to 1 win vs loss, or forget it.
When price is approaching support or resistance lines... And price is in a channel. Which lines do you buy and which do you short?
For me, I am less likely to trade against the slope of the line. If the slope is up, hard to short it unless I am thinking its a retest of the upsloping line, and have difficulties buying a downsloper for the same reasons.....FWIW
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Trading support and resistance lines...
