This is not a silly question. It goes to the heart of success in trading.
The danger is that you open the chart and let the chart tell you what to do, what to look for, what to trade, how to trade.
For better results, decide in advance what you will be looking for. Identify what it will look like -
- what’s the ideal 100% classic example
- what’s the usual common average example
- what are the features that you MUST see and what are the features its NICE to see but which are not game-breakers
- what are the features on the chart that might develop into what you wish to see if you give it a little more time
- what would you see which tells you if its too late to trade
Apply this template to any TA feature, chart pattern, candlestick pattern etc. you care to name, and it will help you plan and stay focused.