DislikedDan,
Thanks for the quick and informative response! I think my problem is more related to when the market is heading in my direction. Rather than pullbacks, what happens when you want to get in at a price that is above you (for longs) or when a price is below you (for shorts).
For example, if you feel you're in a consolidating market and you're waiting for the volitility to die down (as many seem to be doing now on the EURUSD), I want to see a strong break above 3750 region (where there is strong resistance) for entry long. Now if I want round...Ignored
Sorry I misunderstood your question. I may be wwwwrong (as Jacko would say!) but in my opinion that wouldn't quite fit this strategy - that would be more of a breakout strategy as opposed to a trending strategy.
However, I would think that the best way to play such a move would be to wait for price to break the level and then retest it. If the level holds and is rejected on the retest then I would consider a position. Also the price action should be seen occurring on a one hour or above timeframe to hold any weight. However, as I don't trade that way myself I can't offer any real insight into it I'm afraid! I prefer to enter at a discount (retracement)! Sorry I can't be of any more use on this one!
Regards,
Dan