DislikedJaroo, if retracing to previous low/high is a good confirmation, how do we need to trade this one ?
1) Should we wait for the retracement before placing an order ?
2) I believe, you still recommends to place the order 10 pips above/below the hig/low of BUOB/BEOB. (Conventional method)
3) how far should it retrace ? Is there a way we can determine it if there are more than one bar in the left at differrent lows/highs.
In AUD/USD case, it retaced to 07/01 pin bar high. What if it only retraced to 07/05 bar high.. would that not be considered...Ignored
1) Should we wait for the retracement before placing an order ?
Not necessarily, Price could just break hard with out a retracement.
2) I believe, you still recommends to place the order 10 pips above/below the hig/low of BUOB/BEOB. (Conventional method)
Yes, absolutely.
3) how far should it retrace ? Is there a way we can determine it if there are more than one bar in the left at differrent lows/highs. Generally the previous bar high/low. Think Res turning into Sup (and vise versa) But if there is a stronger level like a BRN or a PPZ level within the Outside Bar, Price may retrace to that level instead.
In AUD/USD case, it retaced to 07/01 pin bar high. What if it only retraced to 07/05 bar high.. would that not be considered as a confirmation retracement ? Yes, I would say that its the same level as the 07/01. I just noted the retrace to the top of that PB because it hit it to the pip, PA to PA . . .cool. I was acutually looking for the .8500 to act as Support just because of the inherent strength that BRNs possess. I am getting confused with the retracement .. how to determine the confirmation ? A good confirmation of a retracement level (in the case of a BUOB) would be bullish PA on a lower time frame. But its not necessary to enter at a retracement level, just the fact that it did retrace before the break is a good sign. For example, if Price retraced to the .8500 and then headed to break the BUOB I would say, "looks good . . . that makes sense."
Jarroo, Would appreciate your thought process on this one.
Jim
Indicators show the past. Price Action "Indicates" the future.