second push down, how to spot reversals. (1/2)

When a solid trend is established with higher highs and higher lows (blue). We look for price to reverse and create a low (Doesn't have to break a low as shown on the chart). once price successfully reversed we look for it to retrace back towards the original trend, in this case, to test the high. once we see price fails to test the high we now know that the trend has ended and it is a safe bet to go short here. the pattern is valid until we break the high, and that would be the most conservative place to put the stop. entries should be placed as market orders instead of execution to prevent pulling the trigger too early.