Down Trend is confirmed by ABCD, 'C' being the TVP level for the trend. Which gives the bias to the Down side. However there are two Scenarios that could possibly happen as we see candle '1' has broken the TVP.
Scenario 1 (Green): If candle '1' is broken and given acceptance then we could expect price to move up and break 'A' . Our entry would come on the...
'ABCD' is a Downtrend 'E' being first pullback entry.
Level C indicates Trend Violation Point (TVP) breaking this level and getting accepting above it will violate Trend ABCD and gives new bias for the following trade. Unacceptence of TVP break will give the bias in the direction of the Trend ABCD.
However we can continue to Short the 'pullbacks', to trade in...