Re-testing of Recent Low with Strong Directional Movement
When a retest of a recent low or high is accompanied by strong mono-directional movement then one should take note. In general strong mono-directional movement is a good sign of strong conviction from certain market participants and the spike extreme that is left behind makes a good stop loss reference point that should not be violated.

In this example the Italian Bond moves strongly away from the recent low of about 114.50 with great conviction. This was the low of an uptrend that went as high as 126 and is still going at the time of writing. One should try to get on board as soon as possible in this case with the stop below the low of the day. The market never looked back.