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(Bar 7 Low is Low of Day)
Considering shorting below 74/75 , except this is the bottom of a large trading range.
Fundamental Rule: Do not sell low in a TR.
This was the start of a 35 point selloff.
What is the correct way to read this setup to enter here?
BO + FT
The goal is entry before the breakout. This is an L2 setup, but it's at the bottom of a TR. Any way to justify selling low in TR?
There are enough reasons te sell the L2 here but you have to keep in mind there is also a larger TR possible. If you sold the L2 and your EB becomes a good SB for the bulls like bar 28, 37 or 60 (3m TF), you had to go out with a loss. So if the market is this close to the bottom, i think its better to wait for a BO with FT.
If you want to be in your short before the BO i would suggest to look earlier to sell. We had a big sell off the day before, so the chance the reversal up would become minor is bigger. The W top would be a good place to look for a short or the FT bar after the bearbar, which has a higher pp.
After the wedge top 42, I was looking for an L2 / micro DT, but just went straight down. Buy the Close bulls 42 should have been able to get back to the top.
L2 66-67 but looked like the bulls were rallying for a TTR.
64-70 very strong but then at the bottom of a larger TR.
Maybe the lesson is don't sell low / buy high unless you have extra strong evidence, like here. (?)
After the wedge top 42, I was looking for an L2 / micro DT, but just went straight down. Buy the Close bulls 42 should have been able to get back to the top.
BTC bulls did go out BE or with a small win on bar 44. They bought the close of bar 42 and when bar 43 dissapointed, they bought more. So when bar 44 did go up they could all go out above 50% point of bar 43.
then give up bar 46.
makes sense now
