DislikedI have to begin by saying I was trading EJ today as I have been in the yen pairs for the past weeks. In looking at EU from today I am sure I would have taken a loss at the Friday high. I might also have taken a loss at the weekly close/open level when it came back down. Once that level was broken though I would have shorted the retest and made the losses back as price blew right through last week's low and went down 100+ pips. It is relatively common on a volatile day like today to take a couple of hits before you get the trade that survives....Ignored
Now, here comes my question: Putting in consideration that this is neither a daily high/low which gives you a quick concise decision to fade it, how do you come to the conclusion that price is definitely going to bounce off that level and go up instead of pearsing through like it did?