A trader explains a simple strategy: wait for price to retrace to the 50% midpoint of a range, then enter when it hits the 50% of the next sub-range. He avoids chasing larger moves that fight the downtrend, keeping risk low by targeting one specific price level.
Price is tumbling. All I want to see is price trade into 50% of the range here and then 50% of this range. And all I want is this move right here, because at that point, even though this is the trend, 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 that we're currently in.
