I think it depends on your trading style.
You say you are able to identify direction. The issue is that direction is a matter of perspective.
Trader A and Trader B are looking at the same chart at the same time.
Trader A thinks the market is going up.
He goes long with a 300 pip T/P and a 100 pip S/L
Trader B thinks the market is going down. He goes short at the same price Trader A went long. He also has a 300 pip T/P and a 100 pip S/L
Trader A: Long
Price goes up 150 pips from entry, then falls 300 pips to 150 pips below entry, hitting Trader A’s S/L along the way.
Trader A claims he was right because price went up 150 pips before hitting his S/L
Trader B: Short
Price goes up 150 pips from entry and hits Trader B’s S/L along the way. Price then falls 300 pips to 150 pips below entry.
Trader B claims he was right because price went down 150 pips from his entry after his S/L was hit.
Both traders claim to be right about direction but both traders lost.
Who was right? Or where they both wrong?
Instead of trying to “identify direction”, maybe you should focus on trying to identify low risk opportunites that present themselves.
Dont make PREDICTIONS, make WELL CALCULATED RISKS.
Best of luck you