The chart below is of NY Cocoa using a 4-hour time frame. It gives a good example of why we wait.
Traders moved in on the large bearish candle that took price to that boundary of support only to have the price churn at support for the next few sessions. This churn burns through a trader’s emotional resources and makes them question the original decision. In doing so it amplifies the chances of panicking out of the trade if the price moves back into the congestion zone.
It is much easier on the nerves to wait.
