Is the market going up or down?
Trading isn’t about guessing whether the market will go up or down — it’s about understanding the price behavior within a range and waiting for clear signals to act. From my own experience, trying to predict market direction without respecting ranges often leads to losses. Instead, marking the high and low boundaries of the current trading range helps you visualize where the market is consolidating and where potential breakouts may occur. A crucial element I've learned is watching for real breakouts characterized by a 'fair value gap' (FVG). This gap occurs when price movements create empty zones on the chart that reflect imbalances between buyers and sellers. Trading breakouts confirmed by these gaps increases the probability of catching sustained moves. Setting your entry as a limit order within the gap area, rather than impulsively chasing price movements, allows for better risk control. Placing your stop loss beyond the breakout candle protects your capital if the breakout fails. Also, targeting twice the stop distance rewards you for disciplined risk-reward management. Patience is key — sitting out during range-bound phases avoids unnecessary gambles. By following this approach consistently, you learn to trade with market structure and momentum, improving your win rate and preserving your trading account. Keep revisiting these principles and practicing chart analysis until they become second nature. This method turns the uncertainty of 'up or down' into a structured and disciplined trading strategy.
