Resistance exit candlestick trading
If a trader has any open trade in the market and the candlesticks formation nears the resistance level,
the trader should exit the market. This is mainly because the market prices may choose to reverse upon hitting the resistance level.
To minimize the risk, the trader should close such an order at some pips away from the resistance level
since it is not a must for the candlesticks to reach or touch the resistance level; a reversal may occur way before.
But instead of closing your order (in this case it is a buy order) manually, it would be wise to use take profit and stop loss levels.
The stop loss should be about ten to fifteen pips below the support level while the take profit should be somewhere
at the center of the range between the support and resistance levels.
News report exit candlestick trading