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| You have no guarantee that any particular retracement level will hold price and trigger a solid bounce. So the most conservative path assumes a defensive posture that stands aside until the countertrend reaches the 62% barrier. Since this represents the deepest potential bounce, odds favor stronger S/R here than other levels. Of course, many trends never pull back this deeply and opportunities are lost. But this tactic also avoids false bottoms and tops. Execute positions at this deep retracement as soon as it strikes if other forms of cross-verification support the trade. If not, stand aside and wait a little longer. While 62% should provide support, this zone experiences more whipsaws these days because the retail trading crowd has discovered its virtues. An excellent entry signal flashes when 62% breaks and thrusts price toward 70% to 75% before it remounts the broken level. While this contradicts natural trend rules, modern markets demand new flexibility.
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