How do I know if a retest offers a trading opportunity or not? For example Just a single pinbar that touched the trendline surely is not enough of a signal for most traders?
Its a good technique to wait for confirmation of the resumption of the trend. This could be simply e.g. in an uptrend, the breach of the touching bar’s high by the next bar: or you could wait for a new bar to make a close above the touch bar’s high: or two closes: or a breach and a bullish single candlestick pattern.
Because sometimes the trend doesn’t resume.
Thanks a lot for the reply.
Do you know of some good explanatory videos on this?
I would suggest Rayner Teo’s videos on Youtube, but no doubt there will be plenty of others worth a look.
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Exactly, it’s not! Actually, this type of entry point depends on the value of specific level; all of candle patterns are not useful unless having a valid point.
“valid point”? I’ve been reading so much about this stuff the last months, but I have never come across that term.
There is no way to know, but you can predict according to your own trading knowledge and experience. That’s it.
Here, my point of view was, support/resistant levels according to the market trend.
No rule and surely it would depend on the timeframe?