Top Pick Trading Forum

I took this yellow trade as a 2nd entry short looking for break and new low of the minor down trend and short term down trend. It looks like a range so expecting to go from the highs to the lows. It is technically a 3rd entry but the low really looks like a double bottom so I was counting it that way. The short term up trend has played out so nothing against the trade. Prices look a little sideways here and the momentum isn't super clear but I still felt like this was a pretty good entry. Mack didn't mark it and instead marked the red trade 2 bars later which makes me think I was right to be looking for a short in this area but my timing was a bit off. How could I know to not take this second entry?

Visually a potential reasonable entry.

You caught that it could be entering in the middle of a trading range, which is the hesitancy. However, the entry bar only achieve 50% pullback into the prior bear leg which is showing good rejection. So the question becomes how did prices move as that bar was forming. Was is a meandering waffling up and down, or did you see a stronger consistent push downwards to complete the bar?

The trade marked by Mack becomes an obvious rejection and trap of the bull bar, so easier to take (because it will move like a failure 1 tick under the bull bar).

Good selection!

Hopefully helpful and good trades to you!