So let’s go over the basics.
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Chasing a market up or down can also offer the potential for greater risk and less return (see below).
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In down trends, every time price rises to the down trend line and then resume their decline, the down trend line has acted as resistance to the upward move of market prices.
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As you can see from the diagram below, the trend is moving up.
This second correction often takes more time than the first to complete the corrective process.
The market continues it’s bullish move to R3 and then retraces to S3.