I use this phrase to determine whether I can use a straight break of a KL or TL or whether I must wait for the retest. But what does it mean?
Ths question has been partially answered by the introduction of my ‘Rule of 3’ which I use to select trades that have less structured rules. One of the three can include a TP magnet.
I am still working on the stats and the best way of accurately recording this data, but I am almost sure that all TL break trades are better traded as a retest – the Reverse-Broken-Triangle (R-B-T) is the most likely exception.
In the same vein, most other trades need a short period of corrective action around the level for them to succeed as entering a retest trade at or just before the level usually means that I get caught in the cross-fire as the market decides whether the reverse of break.
