may i ask ; based on the trend line you draw, this would be the 5th time it touches the line and you say it would drop further.. is there any way one can verify if this back testing is done ? or it might catch the shortists by surprise and do a squeeze. thanks
these ideas are trade 'set ups'. I look at them based on technical analysis (EWT). You are correct that everyone should have a tested method of entering trade/where stop is placed etc. Also if you read momentum on trend and it is waning it is more risky so wise to check your position size, however many of them will continue to go and if risk:reward is good I personally will take trade - especially if I see an obvious target for market - as in this case, where I am expecting we want to test/break this previous low. You should always do your own analysis and if you do not agree with the setup absolutely do not take the trade. Each trader is responsible for his/her own trades. Happy trading!