Static Line Rejection Trade
The Static Line Rejection Trade looks for a fresh test of a support/resistance line and a rejection away from that level.
Rules
1. Fresh test
Price must not have been to the Static Line in a while.
We are looking for a fresh test of the line.
2. Reach of price to the line
Look for approximately 4 candles reaching toward the Static Line, where the tops/bottoms of the candles don't break the pattern toward the line.
3. Entry
The candle to the left pierces the Static Line.
Enter on the break of the top/bottom of the next candle away from the line.
These notes are intended as a reference for those of us already following and trading Bob's strategy.
Please add your own observations, trade examples, charts, or questions below. If you think any of these rules don't accurately reflect how Bob teaches the Static Line Rejection Trade, post that as well so we can discuss it.
Static Lines — Rejection Trade
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