Start of Downtrend - just after the fake out of channel pattern
Wrong entries
1. Point 1 is not the right entry, because no candle crossed the breakout candle at point 1.
2. From 2 to X , we can think of entering in the trade in buy direction. We should never do that, because market is still in downtrend. It never broke the previous high, it is just moving in upward direction to reach supply zone, so that it can fall more.
3. Around point 3, we have blue consolidation area. After consolidation at point 3 we get a huge upside move - but we should not enter in the trade, because market is still in the downtrend. That huge move is just for taking price to next supply zone, ie at point 4.
4. There is a possible entry for upside move at point 5, but we should not enter here, as market is still in downtrend , so we should just wait for market to reach supply area, ie at point 6.
At 6 we can again short market
Exit the trade: we should exit the downside trade, as soon as market reaches the previous low.
1. Point 1 is not the right entry, because no candle crossed the breakout candle at point 1.
2. From 2 to X , we can think of entering in the trade in buy direction. We should never do that, because market is still in downtrend. It never broke the previous high, it is just moving in upward direction to reach supply zone, so that it can fall more.
3. Around point 3, we have blue consolidation area. After consolidation at point 3 we get a huge upside move - but we should not enter in the trade, because market is still in the downtrend. That huge move is just for taking price to next supply zone, ie at point 4.
4. There is a possible entry for upside move at point 5, but we should not enter here, as market is still in downtrend , so we should just wait for market to reach supply area, ie at point 6.
At 6 we can again short market
Exit the trade: we should exit the downside trade, as soon as market reaches the previous low.