Learn to differentiate between random ranging or good bounce. I like to see more of a bounce. The pics above & below show what I like to see when looking for a line to be reactivated (S or R). I am looking for a 'V' or 'U' type shape to form.
For a line to regain its strength I want to see the line completely reject the price. If you look at the picture below (previous post) you see a range stuck on the line (highlighted in red), and a strong reversal from the line (highlighted in blue). The bounce from the line immediately makes it tradable again. You should be looking for the kind of 'V’ or ‘U’ shape in the two images above. You should take into consideration the strength of the bounce. If it is a very weak bounce, it is not significant. I want to see a strong move towards the line, a bounce, and a strong move away. There is no exact amount of pips I want it to move, it is a judgment call I make at that time.
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