Analysts often say that bottoms on the daily chart usually require a second reversal off the low to convince enough traders to trade the market as a possible new bull trend. However, this is true of tops as well. A second entry is almost always more likely to result in a profitable trade than a first entry.
If the second entry is letting you in at a better price than the first, be suspicious that it might be a trap. Most good second entries are at the same price or worse. A second-entry trader is someone entering late, trying to minimize risk, and the market usually makes him pay a little more for that additional information. If it is charging you less, it might be setting you up to steal your money in a failed signal.
Traders looking for second entries are more aggressive and confident and will often enter on smaller time frame charts. This usually results in traders on the 5 minute charts entering after many other traders have already entered, making the entry a little worse. If the market is letting you in at a better price, you should suspect that you are missing something and should consider not taking the trade. Most of the time, a good fill equals a bad trade (and a bad fill equals a good trade!).
If you are fading a move, for example shorting the first reversal in a strong bull trend where the move had about four consecutive bull trend bars or two or three large bull trend bars, there is too much momentum for you to be placing an order in the ...