[00:00] Here, price had just formed a swing high, and the zigzag was sitting above the recent candles. Price pushed up and touched the upper line of the Donchian channel, and a bearish candle formed right at that boundary, confirming the setup.
[00:14] All three conditions were met, so the sell was placed on the next candle exactly by the rules. But watch closely what happens right after entry. Instead of reversing down, price pauses briefly and then pushes straight back up,
[00:28] breaking above that same boundary it had just touched. The zigzag line starts curving upward again, which is an early sign that momentum never actually shifted in our favor. The market kept climbing instead of turning. And here's the outcome. Price continued higher, and this trade
[00:45] closed as a loss. This is exactly the scenario I warned you about earlier in the video. This strategy is built for ranging back and forth markets, and when the market is actually in a strong upward push like this one, even a textbook-looking setup can fail. That's not the
[01:02] strategy being wrong. That's the market condition being wrong for this strategy, and recognizing the difference is what separates consistent traders from the rest.