Zuret9,
from your post it sounds likes you are trading s/r and the DIB isn't adding anything - espescially when you say you wait for s/r to break and a DIB to form.
Looking at the GJ chart you posted here's my read of it
- GJ in an uptrend
- forms a range with support at 161.65
- breaks under support and a DIB forms under support which is now acting as
resistance.
- take the trade on the break of the low of the DIB around 161.30
The thing is if you think 161.60 is resistance why not enter there with a tight stop? Why wait for the market to drop 30 pips? You can see that 160.80 is likely to be support so an entry at 161.30 has a risk of about 40-50 pips for a potential gain of 50, unless you think that that support level will go. Which given the strong uptrend GJ is in is on the unlikely side.
The trade at 161.60 with a 30 pip stop and 80 pip target (160.80 as before) has a much better r/r.
So coming back to my point - is the DIB adding anything to your reading of s/r?
from your post it sounds likes you are trading s/r and the DIB isn't adding anything - espescially when you say you wait for s/r to break and a DIB to form.
Looking at the GJ chart you posted here's my read of it
- GJ in an uptrend
- forms a range with support at 161.65
- breaks under support and a DIB forms under support which is now acting as
resistance.
- take the trade on the break of the low of the DIB around 161.30
The thing is if you think 161.60 is resistance why not enter there with a tight stop? Why wait for the market to drop 30 pips? You can see that 160.80 is likely to be support so an entry at 161.30 has a risk of about 40-50 pips for a potential gain of 50, unless you think that that support level will go. Which given the strong uptrend GJ is in is on the unlikely side.
The trade at 161.60 with a 30 pip stop and 80 pip target (160.80 as before) has a much better r/r.
So coming back to my point - is the DIB adding anything to your reading of s/r?