Entering on large impulsive candles preceded by a pullback with smaller candles

[Sprout]

For those who like things visualized (i know its easier) i found an example. I am in the airport now and dont have my laptop with me. Look to the right side just a bit away from the middle, we have a powerful sell-off consisting primarily of large bearish candles, then a pullback consisting of small bullish ones, then we get another "strong" red candle but it doesn't get anywhere close to the last low. If it did OR if we had another powerful red candle, provided the context is there (overall downtrend), this is where we would enter. I am willing to backtest this myself, but the whole point of this thread is to find someone who would tell me they have already tested exact same set up and there is no edge or that there is an edge and i am headed in the right direction. By the way, if my theory is correct that this is a good pattern for entry (i am not saying it necesserily is), you could also enter on the pullback without waiting for the second with-trend move, but i am not a fan of the idea of pullback trading, all kinds of problems with it, such as missed opportunities, not knowing where it could end, etc, I am not saying pullback trading is a myth, but I am not keen on it.

When in doubt - zoom out.

In your snippet, trace the range created by the HH and the LL (try with wicks and then again with OC) and look left.

Ask yourself,
“why did price go here?”

Your 1R trade was just prior to the short set-up that caught the move to the LL

“why did it stop and reverse at this LL?”

When in doubt -zoom out.

 

[murray t turtle]

For those who like things visualized (i know its easier) i found an example. I am in the airport now and dont have my laptop with me. Look to the right side just a bit away from the middle, we have a powerful sell-off consisting primarily of large bearish candles, then a pullback consisting of small bullish ones, then we get another "strong" red candle but it doesn't get anywhere close to the last low. If it did OR if we had another powerful red candle, provided the context is there (overall downtrend), this is where we would enter. I am willing to backtest this myself, but the whole point of this thread is to find someone who would tell me they have already tested exact same set up and there is no edge or that there is an edge and i am headed in the right direction. By the way, if my theory is correct that this is a good pattern for entry (i am not saying it necesserily is), you could also enter on the pullback without waiting for the second with-trend move, but i am not a fan of the idea of pullback trading, all kinds of problems with it, such as missed opportunities, not knowing where it could end, etc, I am not saying pullback trading is a myth, but I am not keen on it.

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THAT can be a profitable pattern, with the ETFs i trade, Veldon;
moving averages downsloping in the right bear \200day moving average direction............................... SPY benchmark to be specific.
What help$ trend followers/traders\investors= major trends dont change very often@ all .
BUT i dont assume that pattern+ plan has to be profitable across all markets.
The way i buy + sell cash metals[average weekly] is not related to moving averages @ all.
Cash Metals business for me is more of a bid/ ask spread profit.,!!