I think your initial trade was good ; trade management and tipping point were done right as well.
Sometimes it's hard to re-enter. I'm lucky enough to almost never "imagine" and try to "forecast" the price action. However, I'm disturbed by another "folly" which is thinking "it didn't break once, why would it break now?" but that is of course the wrong way of going about it. The proper thing to do is to re-asses all the technical signs again. We must put all "non technical" thinking aside. There is no saying when and how a setup is going to break or when a given trend will stop. One quote that comes to mind is when Bob says that trading is a lot like math: one must count all the positive clues and then all the negative clues and then see which number is bigger.
That brings a question... How should we interpret the failed break that you took? Here E1 wasn't a false break, nor a tease, in the sense that there was buildup. However, the break got shot down. In my mind that spells bullish force, and therefore a deterrent from taking another bearish trade. But I think Bob's reasoning here would go something like this: sure the break failed, however bulls weren't strong enough to drive prices back up, prices were still stuck very close to the range and there were no signs of upside pressure. Bulls merely printed a false high and prices reverted back down. I think this bearish action is enough to cancel out the fact that the previous break (E1) failed, which was a strong bullish sign when taken up on its own. When comparing it to the subsequent price action, this bullish sign lost it's importance. Also, candles printed another nice buildup just before the actual break (M).
Writing this post actually gave me an "aha!" moment. In the past when seeing a break fail I was very unsure about how to interpret it (is a break in the same direction still valid?). Now I think I know. Any opinions are welcome on this.
