The first pullback after a change of structure – you all know I absolutely LOVE these trades.
Especially when the prior structure was so damn frustrating. Because that can lead to a great move in the new direction.
Same concept as always!
When we have a strong directional bias, watch for any price action that has potential to trap other market participants.
In this case, possibly tempting some to enter long in hope of capturing a reversal. Or stopping out the weaker shorts who were positioned correctly but couldn’t hold.
Watch price, placing yourself in the mindset of those who might be trapped (in or out of a position).
And use the point of their failure to time YOUR entry in the original bias direction.
Happy trading,
Lance Beggs