DislikedGhous, is there also a timeframe over which the setup would be valid assuming it broke the high, or a price extension over which its invalid.
eg it takes another 10 bars before it retraces or the bar extends its same length again before it retraces back down?Ignored
I assume you're asking abt playing retraces after a decent sized conventional move which would be the break of the buob and continuation of the bull move for quite some time before it sinks down under the buob...
Well then here goes...
I am not sure if you can play such retraces but I really don't like the idea of getting in at high risk in a trade off a PA bar that has already produced what it was supposed to,
retraces to me make more sense when price breaks the PA bar and pulls back inside the PA bar down to 50 or 61.8 fib, a blind entry (or using price action off a lower time frame) here is more logical.
Honestly I don't play retraces anymore so hang on for some time Jarroo will assist you better (he's online. )
Regards,
Ghous.
I believe . . .