'ABCD' is a Downtrend 'E' being first pullback entry.
Level C indicates Trend Violation Point (TVP) breaking this level and getting accepting above it will violate Trend ABCD and gives new bias for the following trade. Unacceptence of TVP break will give the bias in the direction of the Trend ABCD.
However we can continue to Short the 'pullbacks', to trade in the direction of the Trend ABCD untill TVP (C) is broken and accepted.
Level C indicates Trend Violation Point (TVP) breaking this level and getting accepting above it will violate Trend ABCD and gives new bias for the following trade. Unacceptence of TVP break will give the bias in the direction of the Trend ABCD.
However we can continue to Short the 'pullbacks', to trade in the direction of the Trend ABCD untill TVP (C) is broken and accepted.