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!
Price made a fakeout on the first support zone. It took liquidity, on the support below, it retested the zone and it flew up.
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.
The accumulation area represents a period of buying, typically by institutional buyers, while the price remains fairly stable.
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!