I bought there, thinking price still had some space to move before hitting resistance (previous high). You are right, my entry was late and too high. https://www.tradingview.com/x/Fl1RYQog/
For me, thinking is not warranted, I can't back test thinking. You need better idea of how you want to enter and where you get out when wrong.
Here are some questions, I have put them on the chart as well regarding the entries. #1 Let price go through, wait for close below and if it goes back up, your long. Let price break the TL, if it goes back upenter on this candle? #2 Price just hits TL and your long. I understand this. #3 Let price hit TL or go through it and buy above lowest high. Which lowest high are we talking about here? https://www.tradingview.com/x/gciWZKER/ What can I combine gann 50% rule with for entries? Because I find that many many setups retest the 50-618 level, bounce off and continue with the trend.
When is a TL too steep and when is it too shallow? Often price doesn’t touch the shallow trendline for an entry, that’s why I’m thinking of using a 50% retrace entry. When is an entry too late? In that chart I feel that there is still space for price to move before hitting resistance. The retracement for entry on the TL is also around the 50-618 level.
#1-Can enter above the TL which was green candle. #3-red candle looks like high is lower than green candle. First off you have to have where what I consider enough bars on screen like 8 days to current entry because if not enough will alter degree angles , what will look like gentle slope on spread out chart, when you crunch it together the angle would get less shallow, the more you have screen time, the better judge you become of what you fell is enough bars. 50-to 65% is good for entry but what about something that only gets to 48%, you ok with missing those? As far as too late, 80% area often seems not to be a happy area.
I have another question on your break even trades. You have told me about your stats, and I am wondering, don't you need price to turn in your favor like a 95% of the time? 5% they go straight to the stop loss without turning? Those are some insane entries. Have you backtested ABCD patterns or 1:1 drive/measured moves before? Were they useful? Do you think if buying at support and taking profit at next resistance is a long short? Because I'm wondering if this system can hit 50-60% win rate in the long run, I manually backtest so it's slower and I don't have so many backtested setups yet.