You can trade the bullish setup only when the market forces its way out of the existing trendline structure, signalling a possible market readjustment. However, the breakout alone is insufficient.
A more sustainable bullish setup would require the price to break above the previous high, fail to sustain the initial breakout, and then correct again. You can place a pending entry slightly above the high created by the initial breakout.
If the price returns and breaks above that level with strong momentum, it would confirm renewed buying pressure and improve the validity of the bullish setup.
**N.B.: When first drawing your trendline, you would have first connected with the second one. That’s not bad. But only make adjustments to your trendline once! Then wait for how the market plays out. **
A good setup on a 30-minute chart always takes an average of 2-7 days to manifest. It is also always advisable you draw your trendline from where the market correction ends after a minor bullish move. Also, you can’t draw a trendline until the market moves an average of 100 pips.
The market can be erratic and not move as far as you wanted. All that matters is setting your P/L to 100 pips.
