I will try another question do you use for more promising trades (like X) larger size and after buying without price confirmation, add extra after price confirms (ie after 1st position in profit) & tighten stop to keep risk at check?
I didnt say now, but that is coming but to answer your question. Usage of multi-timeframe is imperative, what might look like its falling in one might be just a hiccup in another.
Problem with re-entry "Look for a pullback at your A levels for re-entry" is that oftentimes the momentum has totally changed Further, it *could* lead to a complex consolidation (eg JPY) potentially lasting for months...lots of trapped traders.. Dead money. Look at X for another example Seems to be counter to one of the main principles of good trading/ACD of taking the trade when it's less obvious to the majority In any case, AUD (vs US$) looks far weaker than EURO in relative terms these past few days. Why would one want to trade a weaker currency.. Dunno what the big deal about the Aussie is. Look at the NZD/US$, it's given up all the gains from the recent up move to 0.85 Don't fall in love with AUD/USD just b/c it was once a good trade. I believe this is the concept of "Next!" in ACD as Fisher says. LOL
All things you said are true, I tend to focus on number lines. The EUR/AUD pair had a nice bounce to the tick off the QTR A down. The EUR has been very strong across the complex. It's not a matter of falling in love with a currency, it's about focus. Some guys focus on very short term, others on long term. I base almost all my trading on number lines which almost forces me to take a longer term perspective. Having said that,you are right, one has to know when to buy the failed A down and when to let it go. And that is where the number lines come in. Many products will maintain strong number lines into the pullback, those are to be bought. Other number lines will break down into the pullback, those are to be avoided. As I've said countless times on this thread, all aspects of ACD have to be incorporated.
As I stated above, the number lines should guide this decision. The number lines are based off of price action. So a product that is acting well with a strong number line should be bought on pullbacks and vice versa sold on rallies.
To me, all trades are promising or I wouldn't take them. I build positions based on the ACD framework. I add to them just as if I were initiating a new position. If I wouldn't initiate a position at that price, why would I add to it at that price and vice versa.
BTW, the EUR/USD (6E) failed at the QTR A p almost to the tick around 1.3835. And I mean that literally as in a single tick. LOL.