Hi Romsunz - I tend to follow Sam Seiden's approach, which is to enter on the retest with pending (limit) orders, which by definition means I'm not waiting for bounces, breaks, or price action to indicate a reversal. The thinking is that this gives you the best possible entry, that you're entering where big banks are also likely to be entering.Romsunz wrote:Is it good entry on retest in supply zone or should we wait till bounce or break?
The advantages are therefore having close stop losses and maximising your profits, but the disadvantages are of course the risk of getting it wrong. Your identification of the zones needs to be spot on, along with your feel for the direction of the market & where the price is likely to turn in your favour. This is a matter of practice - the more you trade that way, the better your entries become. Remember we don't need to have every entry succeed, but rather to have a high enough proportion of them run to the take-profit level to exceed the amount lost from stops being hit.
That's not to say that you can't trade successfully by waiting for a bounce or price action in favour of reversal first. My good friend Nick of http://forexnoobs.com has developed an extremely successful trading method based on support/resistance with bouncing or hesitation prior to entry. I guess it depends on your personality as to which method you prefer
What I'm trying to do in summary is look for their footsteps and walk in them, to trade in the direction I think they're trading in, at the price levels I think they're trading at.