The above image depicts how we should look for trade opportunities. We must always wait for price to reach a key level in the market before we plan on entering a trade.
We have marked a key level and found the previous swing high in the market, price then headed towards its support level where it made its way back to test resistance. If you look you can see a trendline formed while it was moving back up.
Once the trendline was broken we could short back down to support.