Perfect World - No Counter Trend Impulse

Earlier tonight I exchanged comments with another trader about a failed trade. He was trading a gap up, with the trend, and took an entry after a shallow (38-50%) test into the intra-day ambush zone (38-62%). The only sign of a problem was somewhat of an impulsive (counter-trend) move coming into the ambush zone.

A key is to look for non-impulsive counter-trend corrections to trade. I traded PWRD (from scanner), and even though it was a bit choppy and it was a short in an overall up market, it worked for a late retest of the AM low. Notice the absence of any significant counter-trend impulse in the bear flag (15min and 5min charts). It also helped that the bear flag formed near the ORL and below the PDL.