I re-re-re-read the rejection rule section. I think is the only part of the channel breakout chapter that I don’t understand fully.
What I want to know is if I “enable” the rejection rule everytime I see a channel breakout with the five day condition, or only on the first time, when I bought the pair.
For example, let suppose I bought EURUSD at 1.3 and the five day rule is active, so I apply the rejection rule. The price never retraced to close below the 1.3 level, so the rejection rule doesn’t gets activated.
3 days later, a new high is made and it breaks the previous high, that was established by the current trade entry bar. The five day condition is enabled, should I need to check for rejection rule here, and if it gets activated, should I close the trade made various days before?