Disliked{quote} Mike i have to say i'm a bit confused with this Gold trade. Firstly, I was watching this BUOB forming but was not convinced to take it as i thought it was in sideways/consolidation/box area and BUOB close above only minor recent lows not outside of the box. Also it did not close above descending trendline. Secondly, could you elaborate more on when you enter on the close of the bar and when you wait for a pull back. Thanks Mike {image}Ignored
You are VERY right. Price was very sideways and very much trapped in a sideways box. BUT that support level became a pivotal point in the market place. I look at the big drop and then huge snap back creating that very large buob(largest bullish action in awhile at a major weekly low) as something that played for a great support retrace trade for the buob. A buob like that we would NEVER want to buy on a close or a break. Simply because the most pivotal point is that retrace area. This is the type of situation where ONLY a retrace entry makes sense. So this is a great example of understanding that the type of entry you employ plays a HUGE role in the success long term of trades.
I closed this one out today for a .9% gain. It was a touch trade for me so I risked only .5% instead of my usual 3%
Hope that helps
Mike