MrsViolet wrote:I would like to hear from other traders how do you determine whether you should be a buyer or a seller and how do you do that?
Retail textbooks says we should look for market structure
Market structure is not enough and it tricks and deceive many retail traders.
There are 2 types of trends
Market makers trend (real trend)
Retail trend ( fake trend what everyone see in the world)
We have real trend and fake trend majority retail traders get trapped in the fake trend trading against the real trend
The big boys buy LL and sell HH while retail buy HL and sell LH.
If the trend is up retail will see HH and HL so when retail see HL they will all buy this is textbook the big boys knows this
So the big boys will push price lower to hit stops of retail who bought the HL and price will form a LL.
Now retail traders will see HL being broken and have a LL they automatically see a start of down trend they will try to sell the LH.
Big boys will again push price and make HH then retail trader doesn't know what is really happening and the cycle is always repeating itself.
Majority of retail are loosing because they do not know how to determine market trend even if they do they do not know which trend is real or fake so 95% get trapped in the fake trend as they cannot see the real trend that the big boys are trading
So let's talk how do you determine your directional bias ? You can also use the concept of multiple time frame analysis,order flow to explain I also have more to talk about this type of trading lets all get involved in this topic
Hi Violet
My way is too look at H1+ charts and identify Momentum aka a large and strong move that broke over something.
For example a fresh new H1 higher high tells me that price WENT up, IS GOING up and that I’ll buy after some kind of pullback.
Then I don’t know if price WILL go up, nobody knows by the way.
You could profit both from the retracement and the pullback based on your plan, in practice doesn’t exist any ‘real’ or ‘fake’ trend but just what you do.