Disliked{quote} Well Axlz, you will see MANY situations where price holds levels that have been touched twice, 3 times, 4 times or even more. You just need to decide what you want to do and add a rule to your trading plan. It's key that you know what to do in these situations, and do always the same thing. I've personally backtested and forward tested these scenarios for a some time now, and my rule is very simple: I always trade fresh levels, the very first pullback into a level. They have the highest odds to succeed. As simple as that. You want to trade...Ignored
I completely understand what you're saying Alfonso.
But my logic and the way I think about these areas is like this:
Even though it's a reaction, if that reaction manages to have enough "power" or "demand/supply" from willing market participants/orders to take out previous supply/demand zones, then it must obviously be an area of significance.
And so I count these as "fresh" zones, unless I see price touch inside them specifically.
The zone it reacted to, would obviously not be fresh, as it has been touched, but this new area that formed as a result of that reaction, is technically "fresh", as price has not pulled back into it and tested it.
Forgive me if my explanations sound stupid. I am a newbie and you are very experienced compared to I.