It all sounds good on paper but at the end of the day how do you really tell if the retracement is really a retracement and not a reversal ? Many times retracements create trend damage only to end up faking everyone and resuming the trend. Technical analysis is not as perfect as some of you make it out to be.
Specific technical analysis is only as good as the foundation of the data and smooth consistency of the indicator that data it is based on. All technical infrastructure, regardless of environment (market, engineering or physical) is all Base it on imperfect & inconsistent bar and indicator data and the outcome will always be imperfect and inconsistent. Few individuals bother to learn how to construct a solid chart environment. It will pay off.