[00:02] If you pick this one, you're wrong. You see, if you want the chart to go up, you actually want it to go down first. If you want the chart to go down, it must go up first. Here's what I mean. If you want the chart to go up, look for price
[00:15] to break a low first. While doing this break, the candle should wick beneath the low, but close above it, just like it did here. After doing so, it should immediately start heading in the other direction, breaking the previous high.
[00:28] But this time on the break, it should close above it. But this exact point is where I see the majority of traders make the mistake. Sure, this formation looks bullish, and you may even enter a long trade here, but this is one of the worst
[00:41] mistakes you can possibly make. Because where are you going to place your stop loss? Sure, you could place it here, down below this low, but then your risk-reward is insanely bad. And if you do get a losing trade, you are going to
[00:54] do get a losing trade, you are going to take a big hit. Instead, wait for price to retrace back down, use a Fibonacci level for your entry, enter the trade down here. Now, you have a way better risk-reward, [music] and your odds of
[01:06] being more profitable have just raised significantly.