Quote:
Originally Posted by Ray_1
Hi jimmy,
How many times must a s/r, trend lines fibo levels or pivot points be tested to be confirm as a potential bias?
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As Tony points out, there's no real concrete rule. Once will do for me if I can load up at an appropriately safe level. I know the same goes for Tessa, especially on the smaller timeframes.
It’s all about the risk.
If the price action signals me in at a pullback level via one of my favorite set ups, around a previous zone of support & resistance, then I’ll climb all over it.
I like breakouts from ranges. Overnight (Asian) or intra-session consolidation ranges, previous day high-low points etc will perk my interest if I see a breakout & pullback to test the intent.
If price pulls back to check the top (or bottom) vicinity of a range b/o & I get a doji, spinning top or aggressive bull-bear candle with adequate stop placement above-below my potential entry – then I’m off to the races.
Of course it goes without saying that it has to be in tandem with the overall trend if one exists, but that’s all I require to get me active.
You’ll need to get accustomed to your own personal risk profile & trade tolerances first before settling into a consistent basis of execution, but that’s what demo platforms are for.
If you think about what’s usually happening when prices kick back to check a prev breakout zone, then it’ll add confidence to your potential set-up criteria. But you can use the support & resistance guides as a base for nurturing this type of trade execution.