Graham_S
03-19-2009, 03:35 PM
Here's a question I mull around in my mind - not looked at probability or success rate. Anyone done any testing on this?
If we use sk and trsi to initiate a trade and we 'expect' a retrace to sk or at least a 38 fib, why do we not trade down to that level before eventually reversing. Or at least take a portion of it as a short term 'scalp' countertrend. Especially if price has reversed abruptly off ohead res as given on the 1h or 4h chart, 00 no, for instance, as opposed to reversing in the middle of nowhere.
Obviously not do this willy nilly - use the reverse fibs?
Cheers.
Graham.
If we use sk and trsi to initiate a trade and we 'expect' a retrace to sk or at least a 38 fib, why do we not trade down to that level before eventually reversing. Or at least take a portion of it as a short term 'scalp' countertrend. Especially if price has reversed abruptly off ohead res as given on the 1h or 4h chart, 00 no, for instance, as opposed to reversing in the middle of nowhere.
Obviously not do this willy nilly - use the reverse fibs?
Cheers.
Graham.