Simple's Green Room

[pennies2007]

Here's one example Jav. What we have to keep in mind is that these zones don't always mean price will make an absolute top or bottom when it gets back there. But you can bet it's gonna make for at least a temporary move when the zone gets hit for the first time. Alfonso points out in that video link I posted that he likes fresh zones the best. After the first hit, they get a bit riskier.

Notice the green candle tested the zone and then pulled back. The second hourly candle went back into the zone and started pulling back again. That's the normal indication that the zone will hold. Of course, that doesn't always happen. Sometimes the zones get hit, reverse, and just keep going without a retest.

Alphonso's method is simply to just set the trade to trigger right near the zone level with a stop loss just to the other side of the zone and let er rip, win lose or draw.

GU Hourly Chart...