How and When to switch from Selling Short to Buying Long
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Often times when the market is in a panic selling mode or trending down in a correction, stocks fall below their fundamental values. When that happens traders need to quickly close their sell short positions with buy to cover orders and prepare to start swing trading the velocity or momentum runs that will move price up quickly over a 3-6 day average run up to net profits as the stock rebounds back into or near its previous fundamental Level. Being able to shift from selling short to buying long takes practice and experience. It also requires more Spatial Pattern recognition Skills to enable traders to react quickly and switch trading direction. Using center line oscillators helps with this trading activity.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.