My favourite situation is when a price hits a support or a resistance area where it fits my strategy. In this case my plan is to short Crude Oil at R3 level within a resistance area with my stop at R4 and target at S3. If the price will go higher and break the resistance area I'll be looking to buy at R4 on a retest of this level.
Seeing as it touched 3-4 times already and its a uptrend, wouldn't you say its trying to go over the resistance?
TradewithMike
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@xanderhulsebos, Sure, my 1st trade it is to sell in case the resistance will push the price lower. But there comes my 2nd plan in case breaks above the resistance. Either way I'll be able to profit on it. When it breaks above there could be a nice swing higher for more pips ;)
@xanderhulsebos, I always have 2 plans for each instrument which I'm interested that day. This way I can take advantage of it wether it goes up or down.