When to be careful on a buy day

On Wednesday, I put on a buy day long position on the August gold futures (GC), and was stopped out of the trade. While this happens now and then, in retrospect, there was good reason to have been extra careful, or to have avoided the trade altogether. The chart below shows the set up day- a buy day, a sell day, followed by a sell short day. This should have set up a Taylor buy day, where the sell short day low is taken out, then a reversal takes place.

For a buy day entry, I look for three things to take place-

1. A break of the previous day's low.

2. Price reversal above that previous low.

3. A break of the 20 bar exponential moving average on a 15 minute chart.

See the chart below, and you will see the horizontal red line that shows the previous day's low, a consolidation of price, and the break above the low, which also broke the 20 bar ema. Following the breakout, price fell, and I was stopped out, as the lower trend line was taken out. 

Here is the daily chart that show how the day ended up- lots of chop back and forth, with no real directional movement-

So what is to be learned from this? I asked Scott Hoffman (my broker and a great Taylor Trading educator) what he thought, and why he noted the buy day of GC as "careful" in his Swing Trader Insight service (worth looking into if you want to trade the TTT method). His comment was that the setup day was an inside day, in addition to having been a shorting day. This indicates that a breakout may be coming, as it was not a true sell short day. A better trade would have been to go long if the previous day had been a proper sell short day.