In this example I am showing how to spot a short setup and when to enter a position.
As you can see BTC broke the lower trend line giving us something to keep an eye on. After the first initial candle broke the trend line you would have wanted to wait until either: 1. You had confirmation at that moment the trend was down before entering a position. Maybe some indicators led you to believe this. 2. Wait for one or two more candles to form. Maybe the indicators aren't really telling you much and its hard to make a decision.
The target's for this short position could have been T1 @ 7536 and T2 @7489 Those targets would have given you a very nice R:R of 5.25
In these scenarios its all about waiting for confirmation. If you don't you can get badly trapped and lose a lot of money. We are all about making good trades on confluence.
boy am i stupid for counting the waves, and watching the ema, volume, rsi, dmi and support an resistance levels....I think i went short way to early I went short when i seen the double wicks up top, the i thought meant a reversal would soon happen. I bailed at 7769 i should have waited i guess. but i'm am new to trading please forgive me master I will do better.