Let's give example. Price is going up. then price retrace to a particular level. You anticipate price will continue to go north from that level. then you buy immediately. very difficult to earn money this way. now talk about react. Price is going up. then retrace. then price proceed to go north and it gives you a signal. You react to that signal immediately by buying.
I like your sequence, but you did anticipate by preparing for the possible turn which you then reacted to.
Yes but OP was aluding to placing a trade at the anticipate stage, whereas some of us are saying this is less profitable than waiting and then placing a trade on reaction of price.
Would you consider buying a reaction near support looking for a break out up north past resistance an anticipation trade or a reaction trade? Or is it both?
An anticipation trade is placing a trade expecting price will go toward your buy signal. A reaction trade is placing a trade upon or shortly after your buy signal has been activated.
Price running through resistance and then placing a trade would normally be considered a reaction trade.
I did wise up to place them in a journal to save money and better discipline to only do system trades. Some trade from the hip very well, but we all know this style has to based on good memory of some type of rules. For me it far better for the system to either be right or wrong to be able to sleep nites.
You need to be good at each when you need to use each. Like when you need a spanner you need to know how to use a spanner, when you need a screw-driver, you need to know how to use a screw-driver. Neither is more nor less important than the other, its the skill deployed in selecting which to use and how to use it which is most important.