YES!!!
THIS IS CRITICAL.
WE MUST LEARN TO:
1. notice a strong s/r area just beyond our pa if it exists.
2. know that if we trade into it we had better be prepared for a quick reversal that could give us a loss if we are not prepared.
if we know its there we have several choices.
1. get out when it gets there for a small profit.
2. take a small partial profit and move the remainder to BE.
3. stay in with your total position hoping for a break and move your stop to BE.
4. Dont enter until the level has been broken.
in the case we are looking at this level was a big round number at 5100. trading into a big number like that with a defined pivot is very very very risky. the fact remains however that price most of the time WILL reach that first s/r area whether its 200 pips or 20. in this case it did not which makes number 4 a good choice much of the time exspecially for those new to these methods.
good post as usual jarroo and i appreciate your help in this thread,
jim
