whiteadrian23 wrote: ↑Thu Jan 13, 2022 10:14 pm
How do we clarify the difference between a legitimate pullback and a shallow retracement? Does it need to be x amount of bars? Does it need to reach a certain MA? Retest previous support or resistance?
impulse is most of the time big move in a short time, classic retrace is often choppy requires more time (like ABC pattern=corrective) does not have to reach a MA but if price bounces from an earlier SD zone the is a good place
Sometimes getting in too early and price continues to pull back further. Wider stops may be needed but that could also hurt the RR?
yes sometimes this happens, but I do not place a SL there, because PA can grab the SL easily; we have to be sure the PA will reverse, not a stophunt
Can we use price action for entries? For example, a pin bar followed by engulfing candlestick for the continuation of a trend?
yes look for momentum; if TL is broken by a weak candle be careful, better wait for a candle with strenght (nice fat green or red one), entry will be a little bit later perhaps.
best M.
