can someone tell me why wouldn't you get in this sell at the rectangle i drew?We have a red background 2nd red dot for sell

XARD: Your red 2nd dot was superceded by a larger White dot, you could have taken the 2nd Green dot (off the Larger White) in an UP move.
That said, the larger White Dots represent Pullback/Continuation moves, in this case your UP move would be part of the Pullback move so you would not expect it to go beyond the previous Square Top.

As the 2nd Larger White Dot has appeared this would be your 2nd Arrow dot off the top square and also it should be the start of the continuation move going down.
You can trade off this white dot or you can wait for a 2nd smaller red dot and take your trade then.

Again, all trades should be taken at the cross of the trend line regardless of direction, this helps to reduce any recalculation on the part of the dots.