A daily chart break below the uptrend line prompts an impulsive short position, only to be stopped out by a subsequent rebound. How can one avoid entering the market prematurely? Price Action Analysis The initial break below the trendline only indicates a weakening of the bullish structure, not necessarily that the bears have taken control of the market. More worthwhile than chasing the first large bearish candlestick is waiting for the rebound after the two declines to be suppressed by sellers again. After the daily uptrend weakens, a smaller timeframe typically sees an initial decline, followed by a rebound, and then a second decline. Avoid chasing the short position at the lows. Observe whether the next rebound approaches the previous support turning into resistance or the EMA20. If the rebound candlesticks show increasing overlap and lack upward momentum, followed by a bearish signal candlestick closing at a low, only consider entering the market if the price breaks below that low. Conversely, if the price reclaims the key resistance and closes strongly higher consecutively, abandon the trade to avoid entering on a false breakout. Price Action Analysis, PriceAction Trading, AlBrooks, Trend Reversal, L2 Candlestick Analysis, Risk Management