A trader explains a price-action strategy for downtrends: wait for price to retrace to the 50% midpoint of a range, then to the midpoint of that sub-range, and enter when it confirms. Entering early or chasing against the trend kills most traders.
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.
