BIDU won the battle...
I won the war.
I initially entered short BIDU off the 7th bar on the :15 chart. I immediately didn't like the spread action, but I wasn't going to get out and lose money without a good reason. So, I waited for a good reason to lose money and was stopped out on the 12th bar. Great thinking. However, I still wanted to short BIDU since price action never really rallied above the 50% intraday fib. level.
This is how I won the war:
- Placed fib. levels from 1st bar low to 1st bar high (very bearish 1st bar)
- After 10am, price bounced off the 61.8 level a few times, signaling heavy resistance
- I waited for price to break down below the 38% level on heavy volume which it did during the 12:50 candle
- Entered (very nervously) on a break of this candle's low and it looked like price might bounce back up again
- Price dropped hard and I got out without pushing my luck during the 1:20 candle (161.8 fib. level)
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I don't consider this a revenge trade as I just waited for a better entry with higher volume behind it. From here on out, I'm creating a new rule for myself. I will not enter a candle unless volume is twice the amount as the previous candle.
EDIT: Gonna rethink the volume rule... 2x might be too high.
