Fib retracements, as you can see, the 38.2% has the strongest reaction when rejected off of. This doesnt mean you should buy at 38.2, you should always wait for the setup to come to you and remember NOT to force trades!
66 21493 days ago
The Quotation Department was established by the NYSE in 1928, and provided the most recent stock quotations to its member firms. The uniformed clerks wearing headsets were in continuous contact with the trading floor, furnishing 35,000 stock quotations a day in 1931. Helen Hanzelin, a telephone clerk, became the first woman to work on the floor of the NYSE in June 1943. The Exchange soon reassigned three dozen female employees from the 11 Wall office tower to the floor as quote clerks and pages to fill positions being vacated by soldiers being sent overseas. This initial group was joined by dozens of others that were employed by both the NYSE and its member firms until World War II ended. The Quotation Department was eventually replaced by an automated quotation system in 1960 #FBF
Obviously, you can have both a breakout and a retest of the broken level. However, for purposes of this lesson,
we will refer to “trading the breakout” as a method of trading where one does not wait for a retest of a broken
level before entering the market.
On the flip side, “trading the retest” means waiting for a broken level to be retested as new support or
new resistance before entering the market.
The diagram illustrates the difference.
A quick glance at the illustration may have you wondering why anyone would enter before the retest.
After all, the name of the game is to buy low and sell high, right?
While that may be true, the retest of a broken level as new support or new resistance is never guaranteed.
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