Must watch/rewatch
False Breakout Notes
This is regarding gap down bear market scenario.
Here author explains that entering at the low extremes (into LONG) is a mistake, and instead encourages trading SHORT F.B. (196.34) level.
This is a solid point.
Regarding F.B, and why they happen.
In this image, taken from https://youtu.be/00E1hLdPs-Y?t=1467 the point being made is that a lot of players have entered the instrument (at open of US session) at point 1. At point 2, these players won't let instrument go lower (because then they lose money), so they are defending the opening session level.
Direction
Always keep in mind global direction of the instrument (2+ days). Consider trading in that direction, as it will likely yield longer moves.
F.B Nuance
If initial level break is "too deep", you can skip and wait until it retests the same level with lesser break.
Although here, my typical Lossless adjustment after 1R would probably not yield good statistics.
Psychology:
- Not entering an otherwise solid setup for trade is also breaking your rules.
- Forcing yourself to stay in your trades when they go your way with numerous takes will result in big results long term. (G) ( I know this already from personal experience of leaving amazing trades 10x+, too early)