When to re-enter the market after you get stopped out. Only after BF or SF

It's one of the worst feelings of trading: being in a trade, getting stopped out, and then the market rallies in your original direction. When this happens, don't get upset.. do your analysis and proceed with a course of action. Did I get stopped out on a Seller or Buyer Failure? Did I get stopped out for a valid reason? It will depend. BUT if you got stopped out because of BF/SF look to re-enter.

Here's my example. I was long, knew I should be long during the trade, and knew there was a high probability that any seller activity will fail. However, I kept adjusting my stop below swings according to the plan. I eventually got stopped out on this trade on a 123 failure. Because of the failure, I looked for re-entry, knowing that if I took the short signal that just occurred, I would be holding a losing position.

IMPORTANT: Manage your stop properly, don't be exposed to large risk on these types of moves (view my 5 min charts below- $20 risk for around $100 return)