Can The MOB act as "price magnets"?

[Tekunda]

First of all let me tell you that all my observations have strictly been done during Forex trading.
I think I have observed the following:

Whenver there is a new (still untested) MOB, the price will sooner or later test it out. On some charts it looks like the price is moving from one MOB to the next. I am almost inclined to call them "price magnets".
It would be such a wonderful trading: Look for the next, untested MOB and enter a trade and just wait until the price has reached it. Most of my observations have been done using 60 minute charts. Has someone observed this price behaviour also, or is it more my wishful thinking, since it would be a wonderful way of trading? Just go long or short (depending where the next MOB is and wait for the price to eventually reach it and close the trade.

[fabrizio]

Tekunda

Hold it.

A MOB has to be considered as follows:

" The highest level of extension before that the price movement became impulsive""
from this the name MAKE OR BRAKE.

So said, is true that - since mob obeys to an algorithm which take in consideration Fibo retr and ext and much more that only TJ knows- thus should a Mob be fairly close the price , it will be directed to it and tends to test it.

You can adjust your "methodology in this way:

Assumption: 7 times out of 10 the mob Stop the trend.

Strategy: let the Price test the mob; place a stop shortly above the upper part of the Mob. So your stop will be fairly tight.

According to this sell or buy the securities expecting the bounce back.

This is wisely doable.

[SERGIO.M]

Fabrizio I'm sorry,

I wont to complete your good suggestion.

When the price bounce back change your stop at enter price.

Good luck.

[fabrizio]

Sergio

Excellent post , which is again a wise suggestion concerning money management (trail Stop )

Thanks a lot for completing mine with this definitively important part !

Ciao !