SM these aren’t my words but this guy trades in a similar way to me in that he is always looking for the reversal point, he uses limits more than 80% of the time and is an excellent trader. I’m not sure if he still posts at FF but credit to him (GDR3K) as I can’t say it any better about my thoughts on confirmation.
" Find out where the market will hit and most likely bounce away from, fuck all that confirmation bollocks, you want to be first in and first out and let the peasants fight for the scraps, as in, the price drops, you have a buy limit down way under at whatever price, you get filled and the only drawdown you go into is the spread, then market immediately turns the other way and slams through your take profit level like a whore on crack. They are the positions you want. You don’t want to be in the market any longer than you have to as it’s an unpredictable beast open to any and all manipulation. On that note regarding slamming through profit levels like whores, most amateurs in this game would not even think to have a buy limit at the turning point but would wait for ‘confirmation’ or whatever that means, then enter long on a small pullback, only to get cleaned out by the dogs dangleys, mr market and his rotten crotch.
The key is, knowing where the price will hit and most likely bounce away from on first touch. Then it’s having the balls to put a limit order there when all conventional wisdom and every forex site in existence tells you absolutely not to do it and to do it this way or that way. "