Cover on Approach
Closing a short as price nears a level where it is expected to bounce, instead of waiting for the level…
In plain English
Closing a short as price nears a level where it is expected to bounce, instead of waiting for the level to be hit.
Shorts often aim at a support level. Covering on approach means taking profit just before price gets there, because many others are watching the same level and price may turn before reaching it.
Close enough is often good enough. Waiting for the exact level can mean watching the profit slip away.
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