A trader adjusts his pre-market plan when the market gaps up, shifting his rejection level target to match the new price action. He enters on a retest, watches the 2-minute chart as price falls, and trims the position progressively until exiting completely.
I have seen the downtrend, and even though we've been having this type of gap up, we still kind of maintain the downtrend. As long as the, the next high is going to be lower than the previous, we are still maintaining the downtrend. That was the 5-minute timeframe. We've seen the price rejecting this area, and on the 5-minute timeframe, we've been rejecting it again. Initially on the pre-market plan, I've been looking for the rejection of this lower level actually, but price kind of opened not here but here. So it moved up and I started to look for the rejection of this one level. Slight change to my pre-market plan, but still aligned with the overall direction. So here the execution of the trade, price was going down, making some retest. Even though it didn't touch the level, I was just going in and we caught the move down. Okay, so here was the entries when price was going down. Pull up the 2-minute timeframe. Price is moving even lower. Another trim, trim, trim, trim, and out of the position. Basically, that's how it went.
