When the bears come back and we start to see price on a decline everyone always gets freaked out. When in reality day traders are going to be doing the exact same thing( for the most part). Now what we like to say and you may have heard this before is" price takes the stairs up in a bullish trend and then jumps out the window for a bearish trend". What this means is when price moves down it normally does so at a much quicker rate then when we moved up.
All of our price action rules from our price action course are still valid. The only difference is, we need to focus on key levels not micro levels or small insignificant levels.
In a bearish trend or a bear market price will normally make volatile moves up and down. We as day traders do not want to get stuck on the wrong side of one of these moves. That is where our price action comes in. If you have taken our price action course you better know how to identify levels of support and resistance.
Now that the market is moving down we simply look for key levels of resistance to take shorts off of. These key levels can be the open, last weeks low,last weeks high. It doesn't matter where they come from but they need to be important.
We don't want to be taking shorts off a small level of resistance that is made up of a handful of candles. That is weak and we don't do weak levels. Instead we sit out and wait for those important levels to be retested.
Once price is back at a key level we then follow our three steps from the course and wait for that sniper like entry to get short. If we don't get a signal then we are going to simply sit out and wait for a signal to come to us.
Many times traders get to focused on getting into the current moved and end up with a big case of FOMO (fear of missing out). Instead if you would simply wait for price to move back to a level a produce a few of our tell tale signals you might be much better off.
In summary bear markets are really no different then bull markets for day traders. The one difference is traders are going to have to wait for key levels to be touched and look for signals around these levels. Some of the strongest bull moves will come when a bear markets get too extended, this is why we wait at these key levels looking for signals that fit within our rules.
Comment down below how you trade bear markets.