Kardex Trader explains a price-action strategy that enters trades when price retraces to the 50% midpoint of a range. He argues this conservative approach beats chasing larger moves against the downtrend, which carry higher reversal risk.
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
