I personally feel that when a trader looks for the price action signal first, then matches up the supporting factors (confluence) they tend to make better trades. What I am saying here is this…if you see a giant signal on the daily chart, find out what other factors are backing it up and showing supportive evidence; we won’t always be able to trade a signal, mainly because we prefer not to fight the natural trend of the market, and many times we see signals forming against the trend. - See more at: http://www.learntotradethemarket.com/forex-trading-strategies/trading-50-percent-retracements-price-action#sthash.gyrBtQ5Z.dpuf