I have a question. When it comes to determining the market direction, I get confused. Do you have any suggestions for how I can predict where the market will go during the day?
I’m trying to trade with the concept of smart money. I mark the liquidity, but I don’t know which side of liquidity will be taken first.
I use a 20 EMA to help get sense of direction
I did, too, when I tried to do that. I don’t do it any more, now. That solved the problem.
I find it much easier simply to take the entries my methods signal, without worrying about which way any particular market’s likely to move over the whole day, on any day.
I put my faith in RSI, and MA. Proximity to support and resistance levels is always to be considered too in my opinion.
When price is moving in an established long-term trend, it will continue that trend through the next day about 55-60% of the time. Which method you use to confirm the trend is not critical, the duuration is more helpful.
If price has closed on 2 successive days in the direction of the trend, it will probably close in the opposite direction on the third day.
check bigger time frames, weekly and monthly for example. See what direction is the price going on that time frames, is the main wave bullish or bearish and then you can expect a bigger possibility for the day to go to the same direction.
No way to consistently/reliably pick direction… maybe favor macro economics… like positive swap/carry trade direction?