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PREVIOUS：Based on possible market reversals, traders can use these indicators on color charts to help them decide when to enter or exit trades. The key to success in color trading is formulating a strong trading strategy. A trading strategy describes a trader's trading methodology, including position sizing, risk management, and entry & exit points. A sound trading strategy in color trading should consider the special circumstances surrounding the use of color charts & patterns to guide trading decisions.NEXT：One of the most important indicators of market direction is trend lines. The formation of trend lines is one pattern that color traders frequently search for. Visual indicators of a market trend's strength & direction are called trend lines. Traders can predict future movements in the market and modify their trading strategies by spotting trend lines on color charts. Levels of Support and Resistance: Guidance for Trading Decisions. Knowing support and resistance levels is a crucial component of color trading trends and patterns identification.
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