Second entries: do you wait for the second chance?
Price tests a level twice before committing — the second entry is the patient trader's favourite: more confirmation, slightly worse price. The trade-off between confirmation and price is the whole game.
Do you wait?
- the setups where you wait for the second test
- how much price you give up for confirmation
- the first test you wish you'd taken
The support and resistance guide covers level testing behaviour.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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