When a holding suddenly crashes on a huge red candle, do you just exit, or wait to see whether it can win it back in the short term?

That is a good question. If my entry were well below the current price and I were still in the trade, not stopped out, maybe I'd raise my stop to the low of the big red candle, or a little below the daily 50 EMA, to give the price a little room to undercut. But if you want to exit, the bounce is a pretty good spot: we got the bounce into the hourly 9 EMA, a pretty important potential resistance level, together with the 150. So either I sell on an hourly candle breakdown, or I set my stop at the bar low, or a little lower, below the daily 50 EMA.

Source: EP108 | 23 Oct 2026