That obviously depends on your risk tolerance as well as where the stop loss would be placed. If there's a support level in the proximity, I would just go for it. It really all depends. However, the key is to always be prepared before the reversal happens. So you know exactly what course of action to take.
Don't be that guy... If you downshift the timeframe of the chart that prompts you to chase, e.g. a Daily Bar chart. . . or a 30 minute chart, don't chase. Downshift that mofo. An intrepid trader could downshift to a 10 minute chart and oftentimes an easter egg lies in wait to be snatched. Conversely, if that ain't the case and no entry trigger is staring you in the face on the 10m nor the 5minute, then what do your stats tell you about the success to expect from that trade. Bottom line, one mans chase, is another man's 'heads-up' to downshift to a shorter timeframe bar on a faster chart for subsequent analysis: = not chasing = trading.
Depends on what kind of trader you are and how many signals your strategy generates. As a daytrader I never chase after I missed the entry signal. I have every day several entries for profitable trades. So I don't take the risk that the market might reverse. I just skip it. My strategy is based on rules for entering a trade. If I follow these rules I have ahigh probability that the result will be inline whit my expectations. If I miss the good entry, and take another (worse) price, the result of that trade will be different from what my tested LT results were. Some times chase the price ends positive and sometimes it ends negative. In total the result is always close to zero, so just skip them.
Those who know do not speak; those who speak do not know. (Tao te Ching) In any case, you need to know 3 things in order to thrive as a trader: key price levels like support/resistance momentum traps
Well if you are not able to gauge, you shouldn't be trading. You observe the market and PA a bit more.
It's all about time frames isn't it? Day Traders shouldn't chase, because there's always another Trend coming shortly. But longer term Position Traders/Investors may have to chase, if the Stock takes off, like a Netflix, Zoom or Tesla in their growth days. Sometimes a Pullback may not arrive until well into the Stock's advance?