Waiting for a retest is necessary when we talk about patterns. As you can see in this scenario, the price tried to break the pattern, but it just created fake-outs. Waiting for a retest will save you many stop losses!
In this case, the “buyers” are in full control of the trend
and there are only small bearish moments. It is very difficult
to enter the pullbacks because there will be only a small part
of them as the market will tend to push upwards. The best way
to trade in this situation is to pick up the signal at the beginning
or otherwise wait for a break out of the...
Fakeout is a term used in technical analysis to
refer to a situation in which a trader enters into
a position in anticipation of a future transaction
signal or price movement, but the signal or movement
never develops and the asset moves in the opposite
direction.
Volume is the only indicator that, sometimes, I use.
It tells you if the trend, once in a S&D or S&R zone
will bounce or continue the trend. If once reached
the zone the volume is super high, the trend has a
high possibility to reverse.
Wicks tell us if the trend is still strong or not. Many
traders use them as their first strategy, I try to use them as
an extra confirmation. A lot of wicks tell us that the
trend is exhausted and that it wants to change direction.
Easy and effective!
Every Supply or Demand zone has a stronger level on it.
That is called base line and it can be drawn between the end
of the indecision candle body end the beginning of the
legout body. Give a look at the graph and watch how this level
influences the market!
