Ok, as a summary to our discussion of possible entry at bouncing we have to say: The major task at of any trade – is to shift the probability in our favor. Second – always remember that trading is not gambling. If you do something – you have to have a context and logical basis to do it. No trade should ever be done for an adrenaline rush. So, using the confirmation and “proper entry” after the bouncing is a tool of shifting the probability in our favor. The point is that the market itself shows us the strength of some line, with price bouncing from it. You should open a position after the bouncing – with this approach you avoid loss in numerous situations when the market falls like a stone and breaks the lines. If you will not follow to our advice – you can get really hurt by catching the falling knife. Breakout of the Lines As you understand nothing lasts forever, even lines. They have a tendency to be broken by the market price action… very often. So, here we will discuss how we can act in this scenario. The first way to trade it is simply enter the market after a breakout when the price has moved through the level for a solid distance. Here is an example - this is the same chart as #2, but for our purpose here we want to buy if upper breakout of resistance line will take place: #3 EUR/USD 60-min See – after the breakout, the market never returns back to the trend line and particular this trade has finished with a profit. Sometimes this happens, but this way of breakout trading is not our favorite one… Pipruit: And what’s wrong with it? Commander in Pips: Well a lot of blurring details, such as: 1. How much should be a “Solid move” after breakout? 2. When the market just explodes as on chart #3 – you will have to jump onto a running train. The stop order has been placed too far – this is a significant risk. 3. Remember what we’ve talked about Wash&Rinse patterns – in fact, failure breakouts happen much more often than real breakouts.