Key Takeaways from the Trading Strategy

1. Identify the Trend

• Start by determining the overall trend: uptrend, downtrend, or consolidation.
• In an uptrend, look for higher highs and higher lows. In a downtrend, look for lower lows and lower highs.

2. Key Levels or Points of Interest

• Identify key levels where significant buying or selling has occurred, known as supply and demand zones.
• These levels highlight areas where prices may reverse or consolidate, indicating potential trade entry/exit points.

3. Entry and Exit Levels

• Understand how to set stop losses and take profits based on identified levels.
• Wait for price to retrace to key levels before entering trades, rather than entering during push phases.

4. Practical Application

• Use larger time frames (e.g., H4, daily) to confirm the trend and mark key levels.
• Scale down to smaller time frames (e.g., H1, M15) for precise entries based on candlestick formations.
• Look for confirmation signals, such as engulfing patterns or rejection wicks, before entering trades.

5. Backtesting and Practice

• Backtest your strategy in a demo account to refine your skills and build confidence before trading with real capital.

Conclusion

• Focus on understanding trends, identifying key levels, and waiting for confirmations before executing trades. Practice consistently to improve trading performance.