So I’ve done some testing and I realized something the market is always trending or Ranging in some way or another through patterns or just plain ranging in a square. So for example the market let’s say is in a down trend not approaching any structure levels and I’m going to put a sell order at the previous swing low Since the daily candle closed strong on bears side and we are trending downwards so I believe price is going to make a leg lower I wake up to see that the market is targeting yesterday’s high instead of breaking out and making another leg lower like I though it would, could this just be a correction for price to be sold higher and then make a leg lower?, or a complete reversal in the works for the pair? news maybe ? Change of heart went to the bulls side? Like any and all input would be helpful just when I think I’ve figured out something to give me an edge it gets destroyed by the markets randomness, any tips on how to know what targets traders are looking at in regards to recent daily highs and lows ? Weekly highs and lows? I get a big picture bias from looking at price action on weekly and daily and make all my trades on intraday mostly 4hr and 1 hr. Is there something I could be doing wrong? Or not enough of? Idk sometimes I stress myself out.
“could this just be a correction for price to be sold higher and then make a leg lower?, or a complete reversal in the works for the pair? news maybe ?”
It could be anything and could do anything.
The prices doesn’t have to obey your hopes or system.
“Is there something I could be doing wrong?”
You hope that the price will follow your system.
Although sometimes it may, sometimes it also won’t. That’s why risk management is PARAMOUNT