UK FTSE 250 stock Cape was a big faller on Friday. Again, looking at the chart you can clearly see the price was already in a downtrend before the sharp drop. Chalk up another profitable trade for the system. In fact, looking at the chart I can see four tradeable entries from the turn of the year, two on the long side and two on the short side (I wouldn't have taken the long entry at the beginning of March it was a third breakout in the same direction). Out of those four trades, one have been a break-even trade, and the remainder being profitable, including the current trade which would be left to run until the exit price is hit.
Partly because of my initial training exposure when I first started, I have never been able to enter positions on pullbacks or retracements, nor been able to short rallies. I only enter trades on new highs/lows that match the existing trend, or that signal a potential new trend. I guess some people who bought on that sharp up day at the beginning of May thought they got in at a bargain price. Think again...
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