A trader explains his setup for a falling market: wait for price to retrace to the 50% level twice, then confirm with a specific move. If it fails, expect a reversal. He won't chase risky moves against the downtrend.
price is tumbling. Yeah, all I want to see is price trade into 50% of the range here and then 50% of this range. Yeah, and all I want is this move right here because at that point, if this is going to continue to here, great. If it's not, it's most likely going to reverse from here. So all I need is this move right here. I don't need to trade from here to here because this is a risky move, and I don't need to try and grab this because this is fighting the overall downtrend
