Second entries such as A2 and W1P are my staple entries on most days, but on strong trend days, you may not get many of them. On these days you have may have to enter on L1s and H1s. Today was such a day and I would like to share how I pick which L1s I like to take and which ones I avoid.
When a strong trend such as the one from b7 to b13 progresses (with average size bars, not too much tails or overlap, goes many points before a pullback) you may have to suspect that its a very strong trend day and you may have to enter on L1s.
My rule for entering on L1s is simple. Every small trend bar is a with trend entry regardless of color. (Note: This only applies on strong trends). so b15, b25, b57, b62 were such L1 entries. The second requirement I have is that there needs to be one other reason such as 5tf on b25 or the overshoot and inside bar on b36.
I waited to short below the bear bar b16 and this cost me 7ticks as my stop above b17 was taken out. Since the bar was a bit large I should have not moved the stop till I had scalped out and this was an error on my part. Avoiding the entry below an outside bar that's close to the low of day was probably the best thing to do at that point. b16 would also have been a 1st pullback entry if it had occurred a bit higher. Anyone who shorted it and held it till the end of day would have done well.