Yes, the good ol' middle of the channel. Brings on mixed emotions. You will sometimes see me play a d\straight R&S play in Gold and, indeed, we have done some trading off the $5 line. I have no prob with anyone doing either. So long as you have defined the proposition and have a plan in place to manage the trade addressing the risk.

Theoretically we are foregoing trades that fall in the 80-100 and 0-20 percentiles. which casts away $400 of the $1000 range represented by a $10 channel ... $200 at each end. That leaves a $600 field of capture for us to play. Once in a trade I want to manage it to a conclusion doing and making the proper and logical management moves. So I wouldn't stay in the trade at the $5 mark. If I managed myself to an exit of the trade and an opportunity to RE-ENTER at a strong support or resitance point or a $5 level presented itself I wouldn't shy away. Of course, that would mean I'd need to have identified it the night before or earlier as an acceptable play because we don't design trades on the fly while markets are open and moving, right?