{quote} I appreciate the response....so let's go through it bar by bar and question by question....as you suggest. Let's assume C1 is about to close. 1. Did price make a new daily high/daily low last bar? Yes. On the bar prior to C1, a new daily high was reached. Proceed to Question 2. 2. Did price fail to make a new daily high/daily low this bar? Yes. C1 failed to make a new daily high. Proceed to Step 3. 3. "ENTER AT H1 OPEN PRICE..." of which candle C2? "...IN DIRECTION PRICE IS CROSSING THE OPEN...."...
Your example is actually one of the more difficult - or rather awkward is perhaps a more apt word - of entries, as there is very little room above the open of that candle and so you would be entering pretty much as soon as the candle opens. The caveat to this however, is that looking at price action on the trigger candle (the one that made the new High) shows a close well down from the extreme and suggests that price is likely to drop.
Of course, there is no guarantee that price would not have then gone on to make a new high on this entry candle - but that's the chance you take, there is no guarantee. Hold your stops tight, be brutal with them and re-enter later if the opportunity presents itself, which with 1-2-3, is often how it goes.
