My Entry (@2395): My idea was that the was already broken and I should enter the trade. Price reversed the next day to make one more lower high. But my entry was too soon and without any confirmation.
Ambush Entry: It is very Risky. The idea behind this technique in this context is that when the stock has broken the trendline it will go up again near the line joining the lower highs for a test. There a trigger order shall already be waiting for entry. It's risky because a trend reversal may also occur. this technique is to be used when we are absolutely sure about the levels.
Retest Entry: Moderately Risky and the best entry technique. Franklin says that how many times you have seen that the moment you have made an entry, the trade goes against you. The retest entry allows us to avoid this (mostly). The idea is that once we have identified the confirmation candle we place an order for the next day at (High+Low)/2 of the previous day (confirmation day). This would allow us to enter the trade at the wick of the candle (most of the time). This method is less risky and one of the best.
Threshold Entry: It has the lowest risk. The idea behind this is that once you have identified your confirmation candle you place a trigger order higher (or lower in case of a short trade) than the close price of the confirmation candle. This allows you to enter into the trade only if the price is moving in your direction.
Retest entry would have allowed us to enter the Asian Paints Short Trade at a price of 2440. The best thing about retest entry is that it allows us to enter a trade much lower to our stop loss which was 2500 for me in this case. Compare it with my entry. SL with my entry was 105 points away i.e Rs . 31500. But for a retest entry, the SL would have been only 60 points away i.e Rs . 18000. And in trading every rupee matters and every point counts.
Hope this doesn't seem boring :). Best of luck and happy trading.