We usually follow price action, and it generally moves upward as expected. However, it sometimes changes direction suddenly due to news or other factors. How should we handle such situations?
It is also very important to have multiple confirmations for any setup. So, how can we identify whether our setup is valid or not?
Thanks
There’s usually no absolute right or absolute wrong in trading, it’s more of a spectrum from maximum reward at one end to maximum risk at the other.
So success can come from attention to risk management. Confirmation signals from price action or technical indicators or fundamental information can all help reduce risk. the higher standards you expect from these, the fewer and smaller will be your trades, and that tends to reduce reward.
Using a stop-loss is never a bad idea.
By using a stop-loss that takes you out of the trade at whatever level will demonstrate that subsequent events showed it to have been a bad entry after all.
The idea is that stop losses take you out of a trade where you want to be taken out of it, taking a small loss, rather than risking staying in. So you need to ask yourself “Where do I want to be taken out if this doesn’t move in the right direction for me?” and put your stop loss there.
We all have some losers. Make sure they’re not too big.
Many people who’ve tested a lot would actually disagree with that.
An important point to understand, especially if using indicators, is that if the price movements after you enter a trade turn it into a probable loser because it didn’t go the way that 2 or 3 indicators suggested, exactly the same would usually have happened if you’d had 6 or 8 indicators instead. So don’t imagine that confirming indicators with other indicators is likely to increase profitability.
People learning to trade would love that to be true, but unfortunately it usually isn’t. 
Hey, Tommor. Glad you’re still on here giving sound advice…Someone’s gotta do it! Peace.
Could you suggest any other indicators? I am currently using RSI and EMA. Also, how can I choose a pair for trading since there are multiple options? I have a job, so how can I identify any corrections in a pair efficiently?
Why have you decided that indicators are the answer to what you’re looking for?
Well said - this is exactly right. 
Firstly, you should come up with your strategy and the set up and confirmations by back testing, and then, to avoid hitting SL, use tradingview or platforms based on tradingview. they show you the time a news is on the market and you should avoid trading at that time, if you are trading only based on technical analysis.
This is a great piece of advice. I’ve never thought about it that way, just always “was I right or was I wrong”.
Give this a look over: Learn How to Trade the Markets
It covers a lot so get ready to learn!
In situations where price suddenly changes direction, it’s helpful to stay adaptable rather than reacting emotionally.
As for confirming a valid setup, it’s useful to look for consistency across different timeframes. For instance, if the 1-hour chart points to a possible buying opportunity,the setup becomes more reliable and stronger if the 4-hour and daily charts also indicate an upward trend. This way, you’re trading with the bigger trend and not just reacting to short-term movements
You don’t need to look at the 4-hour and/or daily charts to discover that (for example, you can do it using longer/slower moving averages on the 1-hour chart from which you’re trading).
Great suggestion. I will try this.Thanks for sharing.
VWap Daily and weekly
Welcome to Babypips, Melvin …
… but there’s no “VWAP” available for spot forex CFD’s, because there’s no centralized market and therefore no way of measuring or recording volume.
Without volume figures, you clearly can’t have a volume-weighted average price. 
This is why all the counterparty marketmaker “brokers” pretending to be able to give their customers “VWAP” are just fooling them: the only so-called “VWAP” figures they can possibly have, themselves (and therefore the only thing they can display) is based on the volumes “transacted” (they’re not really transactions, of course - they’re just bets) by their own customers. Clearly. Which, in turn, is why they all have different versions of “VWAP” - they have different figures because they have different customers, obviously enough.
I hope and trust nobody’s seriously going to try to trade on that basis! 