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  #948  
Old Apr 11, 2011 3:01am
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Originally Posted by yaed View Post
A thought on this: People often try to identify where S/R is and place their orders there as if they are betting price will or will not pass the S/R. Thats almost a 50/50 game of chance. I dont think thats how S/R should be thought of. Rather i think it could be smarter to enter once you are certain price has past that S/R area or been rejected by it, like skfx showed in one of his charts, this one:
It's easy after the fact to see which way to have traded a S/R. That was a 4hour chart and the move before the fake break was a successful bounce. Then if one had traded the breakout, they'd have lost. How many pips past S/R did it go, 50? Where is the point that we know if it's going to be a bounce or breakout? It's so subjective. No-Brainer Trades is a great thread for S/R trading.
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  #951  
Old Apr 11, 2011 9:03am
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Originally Posted by yaed View Post
Yes the pip distance would be one thing to look at, and perhaps also engulfing, perhaps also how fast its doing that meaning it might be an idea to look at say maybe M5 or so. Thats just a guess. And i agree its so subjective, if it was not all prices would be fixed forever.
PA definitely plays a role. As would current market sentiment. And anything else that might have line up with it. You're 100% correct about how to play it though. Just playing it straight as a bounce without any other confirmation is a recipe for losing.

Thanks for bumping up this thread.
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