Great us vacation spots on If the selling pace increases, they will next look to see how much of the selling is being absorbed. As a stock climbs and then pauses, many active traders will become impatient sellers, putting pressure on the downside. However, if true buyers are in the stock, the selling will be absorbed and not fall much. If traders see this accumulation of shares on any impatient selling and relative profittaking, they may want to continue holding the trade.
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At each level, they continually monitor this price action and begin to devise an exit strategy based on what they are seeing. One option that most employ is to sell a portion of their trade at a reasonable price level and hold the rest for a possible move upward. This way they lock in their profits and hold the rest for more possible potential.
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