I know the thing about timeframes and looking at the bigger picture but really am bad at identifying at which direction to go.
When I trade with the trend, it retraces further and goes into the direction I envisioned it to go.
When I thought it has reversed in trend, it turns out to be a retracement and goes with the original trend.
Any advice is appreciated!!!
One way to identify a trend is if it is creating HL (higher low), HH (higher high) in an uptrend or creating LL (lower low), LH (lower high) in a downtrend. Another way is simply drawing a trend line.
To identify a market structure shift, there has to be a BOS (break of structure) to the downside or upside.
In market structure shifts, be careful for liquidity grabs; wait for confirmation entry, just be patient and wait!!!
Look at higher time frames. What happened prior?
The markets are random. Once you understand this, you can begin constructing your risk plan and trade accordingly.