DislikedAU peaked 7616 , missing 7518 by 2pips then pulled back 6. Should I consider 7618 missed and not trade it anymore ? ps: it went smoothly :TP, , thx Dale, But - how to detect a missed level? This one is a valid miss : price misses by 2-3 pips and retraces by 8-10pips or more Another : 2-3 times 2-3 pip miss with shallow 8 pip retrace Do you have any other valid miss definitions? I am trying to cast some mql code into EA helper - and detecting a missed level is one of functions I want to automate.Ignored
If the market tests the level 3 pips before and makes only 8 pips, I still would be willing to take the trade (lets say 70 % of the trades). If it tests 2 pips before and goes 10 pips I would take the trade maybe 10 % of the trades (only if the level is extremely strong and I see some confirmation in orderflow). Sometimes If the level is tested sooner but there is still a strong support/resist zone I move my trading level few pips higher (for short trades).
It is not very clear cut . If you were to programme it, I would probably go for 2 pips sooner and 8 pips reaction.