The thing about waiting for the reversal candlestick pattern happening around this support level is so that we can enter the trade with a more higher conviction, rather than trying to enter right now when it’s at the support level when there’s a 50/50 chance. Of course, there’s pros and cons to entering right now at the support, or waiting for the reversal to happen before you get into the trade.
The pros of course is when you see the reversal happening, is that the chances will be high already, but of course the downside of waiting for the reversal to come in is that when you decide to go in, the reward to risk ratio will not be as good compared to if you buy right now when it’s at a support level and you assume that it’s going to bounce off this support level.
Alright? So there’s no right or wrong answer. It’s really about knowing the pros and cons and decide which one you are willing to live with
Interested to receive mentorship opportunities like this with Philip?
Find out more at traderwave.com/innercircle
Latest posts by Philip Teo (see all)
- Using Fibonacci retracement to identify supports/resistances - February 13, 2020
- Adrian Reid, a full-time private trader, Founder and Trading Coach at Enlightened Stock Trading - February 13, 2020
- How I use moving average to gauge the trend direction - February 8, 2020