When the price touches the support trend line , or the lower trend line , of an ascending channel , a buy trade is signaled. When the price touches the resistance trend line , or the upper trend line , a short trade is signaled. It is also important to pay attention to the volume of the stock. If the stock breaks support with high volume , it is a greater indication that the trend is broken. However, if the stock breaks support with low volume , it is okay to hold a little longer since it could be a false breakout. If you choose to hold a little longer, make sure you have a stop loss
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