Idea: Testing strategy against the trend using OBOS and stacking time frames. Vertical purple line represents expectation of trend strength long. Green horizontal lines are an estimation of maximum price strength and longer term term downward pressure.
Pros: Perfecting the entry will maximize the profits from the previous down trend. Expected trend highs could also be useful to temporarily lock profit during retrace until signals for further selling are evident.
Cons: The stop has to survive the Monday open. Further strong downward pressure will whipsaw the trade. Risk reward needs price to continue lower 1.7137 for the strategy to be of value.
Pros: Perfecting the entry will maximize the profits from the previous down trend. Expected trend highs could also be useful to temporarily lock profit during retrace until signals for further selling are evident.
Cons: The stop has to survive the Monday open. Further strong downward pressure will whipsaw the trade. Risk reward needs price to continue lower 1.7137 for the strategy to be of value.