(Last Updated On: July 21, 2020)

When it breaks above here, you will be the higher high. So now my question to you is, from this entire context of this, does it look like it’s too late to enter this particular trade based on such situation? Definitely not, right? Because if you see that, if it goes from here to a higher high, there is a good chance that you will continue to go higher from here over the very foreseeable distance. Much higher probability.

So if you do not wait for this higher high to happen, this means that the price would not have broken this downtrend resistance yet. And I always always mention if the price has not clear this downtrend trend resistance, it means that it is more likely to continue to drift lower, because you see it has happened so many times. Even this time that it breaks above it fell immediately as well.

So even a breakout doesn’t mean that you will definitely go higher, but if it’s still trapped in this downtrend zone or downtrend channel, it will most that is continued to go lower until the point where the price will have to cross above this downtrend resistance, right? And when you cross above this downtrend resistance, that is exactly the point where you will see a higher low with a higher high.

And that’s the reason why I mentioned that you need to be patient and wait for a higher high, especially if that has been on a very clear downtrend resistance already. When it goes to a higher high, generally, that is also the time where it actually breaks its key downtrend resistance as well.
So it’s not just about waiting for the downtrend resistance to break, but when it breaks, usually it’s going to be a higher low and higher high as well. So, which brings me back to the point: is it too late When it goes into a higher high? In this case, definitely not because, most likely, you would still have a lot of upside over the foreseeable future that you can continue to go higher from there.

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