The illustration shows a comparison of two markets that have recently broken key resistance but exhibit vastly
different day-to-day movement.
Notice how the first chart in the illustration shows a currency pair where the price action is quite choppy.
When trading such a pair, it’s often best to wait for a retest of a broken level before considering an entry.
This is because the characteristic of how each day overlaps the previous day is likely to remain intact even
after the pair breaks through resistance.On the other hand, the chart in the lower portion of the illustration
shows a currency pair that is much more “clean”. In other words, each day is less likely to overlap the previous
as the market trends higher. In this case, a retest of the broken level as new support is less likely.
To learn more about my trading strategies,you can click on the link in bio or send me a private message.