DislikedSeeking opinions on a EURGBP (EG) situation I am currently contemplating. I have attached a MONTHLY and H4 chart for EG. I have recently been exited from a short trade on this pair and am seriously considering taking a second bite at this pair if price comes back up to the proximal edge of the H4 SZ shown on the H4 chart. However, I cannot see a H1 SZ inside the existing H4 zone that is deeper than the existing H4 proximal edge, so my proposed entry would remain 0.8284 with SL at 0.8340 The reason I am considering a second entry is due to the fact...Ignored
You want to take a short on that level again? Rules are VERY clear about it, only fresh levels. Of course you can take it but H4 is no longer in a downtrend, H4 TL is broken (the one you painted is not correct since the second peak did not make a lower low than the second leg created by first peak. The first hit of that level is what I call a kiss trade, second tests sometimes work well...
But again, the key thing here is: do you take second pullbacks (non-fresh levels)? Is that on your trading plan? Have you tested these entries in uptrend/downtrend scenarios for at least 500 samples and not just a few of visual tests in hindsight? If you have done so, and you had a nice success ratio, then go ahead. If you haven't, you are going against the rules laid out on first post.
It's all about your trading plan and the rules. The rules clearly state that ONLY FRESH levels are allowed, so you'd be going against the rules.
Hope it makes sense!
Alfonso
Set and Forget supply and demand trading community