The above setup highlights two important considerations when we analyse how 'price approaches' the level/zone.
1. Impulsive moves - is the approach considered impulsive?
2. The close approach - is this a reason to cancel the trade?
As you can see from the annotated chart below, the answer to both is no.
For me personally I'd still reduce my original risk in half, as the way I would look at is that although the setup is still valid, it's clearly not 'as good' a setup as if the close approach didn't occur.
1. Impulsive moves - is the approach considered impulsive?
2. The close approach - is this a reason to cancel the trade?
As you can see from the annotated chart below, the answer to both is no.
For me personally I'd still reduce my original risk in half, as the way I would look at is that although the setup is still valid, it's clearly not 'as good' a setup as if the close approach didn't occur.