Dvarrin , there is a very simple solution to that. Do not open up a short position until the first level of support is taken out.
Those dicey looking no demand bars and upthrusts could be because the overhead supply ( weak holders locked in at higher prices) is now coming into the market as price rallies or maybe some professional operator has booked profits. Whatever be the reason this situation is usually quite tricky because there is weakness in the middle and strength at the bottom.
Ideally if there is bullishness and if most of the overhead supply is taken care of then price should rally straight up after a genuine test of supply and close above the first resistance level on high volumes and wide spreads. After this happens this breakout needs a test. TG calls this Test in a Rising Market. But on higher timeframes this test of a breakout is a very rare occurrence , price usually continues the journey north.
I would suggest that you take spend some time away from charts and then sit down and write criteria's which suit your style of trading and places where you would open and not open positions.
Hope This Helps
Cheers
Lalit
Those dicey looking no demand bars and upthrusts could be because the overhead supply ( weak holders locked in at higher prices) is now coming into the market as price rallies or maybe some professional operator has booked profits. Whatever be the reason this situation is usually quite tricky because there is weakness in the middle and strength at the bottom.
Ideally if there is bullishness and if most of the overhead supply is taken care of then price should rally straight up after a genuine test of supply and close above the first resistance level on high volumes and wide spreads. After this happens this breakout needs a test. TG calls this Test in a Rising Market. But on higher timeframes this test of a breakout is a very rare occurrence , price usually continues the journey north.
I would suggest that you take spend some time away from charts and then sit down and write criteria's which suit your style of trading and places where you would open and not open positions.
Hope This Helps
Cheers
Lalit