Specification
Allow me to explain a potential and hypothetical sell, this works both bearish and bullish
All steps are within the m1 timeframe,
Price is bullish, and we are catching the change in direction
Price breaks below previous HL, (Choch)
Price fails to break previous high, thus indicating change in direction as bears are now in control,
Price breaks below previous Low resulting in a change of character,
Price makes a new Low, after mitigating efficiency in the leg that was responsible in breaking the Low,
Price will retrace back up the leg mitigating any and all orders left untouched,
My sell limit order will be placed right at the start of the untouched and unmitigated rally gap (FVG), targeting the previous low as take profit
I will attach trade as reference,