Trading waves inside the Bearish Wedge

The previous bear flag trade got stopped at break even because i lowered the stop to entry. I was too premature with that decision, but i did it because the bear flag was getting so big i was having some doubts. But hey, better safe than sorry :). Now looking back, it never got above that resistance level and at the moment we broke the support and even had a first small retest. Now i am waiting for another move up (like the blue line), but i am not shorting it on the way up. When i have a setup like this, i zoom in on the 1 and 5 min chart to see at least some rejection before getting in. This play fits the bigger picture on the left, the big bearish wedge i showed a few weeks ago. I am going to continue to play the waves inside this wedge.

Thing is, if i am right about the wedge, i means i have the general direction in my favor. That makes trading so much easier when you got that on your side. Just like people who use Elliot Wave, sometimes they have the wave count spot on and it makes trading so easy.



Previous analysis

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So we never got our entry and it just dropped, but now we are at the entry level. But i am not getting in yet. The bounce up is probably just a short squeeze (shake out) but i will wait and see first how things play out. This could make another leg up and dont want to get caught in that move up

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