Kind of.. this is how I would have maybe played that chart if I'd seen it in time. 

First off, the market is in an uptrend, so only look for buying opportunities, that's a no brainer.

So, look at the blue circle, see that first big red candle ? That's a signal that will make people think price could be reversing so they will be looking to go short. They'll wait for confirmation though (retail traders, of course) and have a sell order if the price goes below the recent lows, where you drew that red line.

So another big red candle happens and everyone is now in the trade short. So where would all the shorts have put their stop losses ? They will be either above the high of the signal candle (the second red one that made them enter the trade) or the recent high (above the first red candle). That's where you put your *buy* order !

Another location for your buy order could be just above the red line, as that would signal a trend reversal also and people might have their stop losses there instead. It's also above the 50% retracement level of that red candle which is also a popular level.

Then look what happens on the chart, the market stalls and forms a minor support level. So the people that are short are now thinking 'maybe this wasn't such a good idea' and move their stops down to just above those candles highs, just under the red line. So that's where you move your buy order to.

And look what happens, the next big green candle trips those stops and you're in the market going north. Hopefully the momentum will carry you up and on that chart it looks like it did. If you had a stop just under that minor support line then you'd have made a 1:4 trade or similar.

The beauty is, it might not even have happened. By putting stop buy orders on, they would only be triggered if the trade went in your direction. If the price had continued to drop then it doesn't matter, you didn't get the trade but you didn't lose anything either, consider that a win also !

Of course, it's *very* easy to look backwards and say exactly how it would have worked out, it's a lot harder when it's happening on the right hand side of the chart. Sometimes it works out, sometimes it doesn't, you just have to try it.

Always *always* let the market take you into a position, don't just guess and buy at market.