top 8 simple steps to successful trading
1- Determining the trend
Before looking for entry points, it is important to clearly determine whether the market is in a trend or a sideways movement (flat). After all, it is in the continuation of the trend that signals usually work best.
Moving averages (EMA) and other trend indicators help to visually understand whether the price is rising, falling or “sleeping” in a sideways trend.
Regression channels and Bollinger Bands can further clarify the direction of movement and market volatility.
An example of trend visualization:
In this screenshot we can see how the moving averages are located above each other (bullish trend) or below each other (bearish trend). This is the first step: to understand where the river is “flowing”.
2- Identify levels and zones of interest
Support and resistance levels are a fundamental element of technical analysis. Prices often “walk” from one level to another, and large volumes visible in the horizontal profile of the market signal zones of interest for players.
Support/resistance levels are formed based on historical price extrema.
The horizontal profile of volumes shows where the greatest buying/selling activity is located.
Market participants' stop-losses (approximate levels) help to understand where a liquidity spike may occur.
Example of defining levels:
On the screenshot we can see the highlighted price areas and horizontal volume levels, which are worth paying attention to in order to find an entry.
3. finding entry points
When the trend is already defined and the main levels and zones of interest are marked, it is time to look for specific entry points. This is where signals from smart technical analysis indicators are especially important:
Smart signals help you recognize the beginning of a trend movement or a possible reversal.
Evaluating the strength of signals gives you an idea of the reliability of the current pattern according to many criteria (for example, on a trivial scale from 1 to 10).
Built-in technical analysis (“auto-trading” or “auto-marketing”) can confirm your observations.
An example of searching for an entry point:
In this example, you can see how buy signals (Long) appear at the moment of the beginning of an upward impulse when bouncing off supports.
4. Confirm the set-up with additional factors
There is no Golden Grail, so it is always desirable to have as many confirming factors as possible. These can be divergences, indicators of buyer/seller pressure, as well as signs of manipulation by big players.
Divergences in several indicators (RSI, MACD, etc.) often foreshadow a trend reversal or slowdown.
Buyer/seller pressure shows who controls the current market (bulls or bears?).
Manipulations by big players form false breakdowns, reversals and “knocking down stops”.
Example of setup confirmation:
On the screenshot you can see an example of divergence, as well as areas where, judging by the volumes, there was obvious activity of the “big hand”.
5. Confirming the trend we have identified via Midas Up
After the first trend analysis, it is useful to double-check it with additional indicators. There may be new signals of reversal or impulse movement that we missed.
Money supply movement: figure out how active the participants are and in which direction the volumes are flowing.
Trend tape and oscillators: filter market noise and confirm the start/end of a momentum move.
Price momentum: Often heralds powerful upward or downward spurts.
An example of a trend confirmation:
Note how several indicators confirming the same direction are combined in the screenshot.
6. Analyzing the behavior of large players
Large players (market makers, funds, etc.) have money and influence enough to significantly change the price. Observing their actions is one of the key aspects of successful trading.
The pressure of the big players shows who is entering the market and in what volumes.
Large whale buys/sells indicate points where significant liquidity is exchanged.
Whale buying/selling in the market confirms a powerful price movement.
Example of major player analysis:
In the screenshot we can see indicators of large trades, which often become triggers for reversals or acceleration of the movement.
7. Confirm the entry point by analyzing the current momentum
Even after knowing the general trend and observing the activity of big players, it is important to evaluate the moment of entry itself - especially when the market has already started moving in the chosen direction or is slowing down.
Pulse reversal points indicate the optimal moment to enter or exit.
Evaluation of the signal strength level (for example, 6 out of 10 or 9 out of 10) indicates the probability of successful execution.
The built-in technical analysis can additionally generate “Long” or “Short” signals.
Example of impulse analysis:
You can see how the combination of signals (candlestick patterns, volumes, indicators) indicates a possible long upward impulse.
8. Confirm the setup with additional factors
If one indicator gives a signal, it does not always guarantee a profitable trade - you need to look for confirmation from different sources. Here we can use:
Volume candlestick detailing - determining the true strength of the movement.
The weighted average price helps to smooth out sharp fluctuations and better navigate the trend.
Overheating by oscillators (RSI, Stoch) warns of a possible correction.
Example of additional factors:
In the screenshot we can see how several indicators of overheating and volume simultaneously indicate a high probability of correction, which can save from false entry or late entry into the market.
Conclusion
Consistent market analysis is a step-by-step process that requires a comprehensive approach:
We identify the trend and try to trade in its direction.
We look for key levels and zones with high liquidity and increased attention of big players.
Find entry points based on smart signals, candlestick patterns and volumes.
Confirm the set-up using factors like divergences, activity of big players and buying/selling pressure.
We double-check the trend with indicators, analyze the dynamics and momentum of the movement.
We study the behavior of major players, because they are the ones who form the main market movements.
We confirm the moment of entry by analyzing the current momentum and strength of signals.
We add finishing touches - analyze volumes, market overheating by oscillators and other factors.
Use various tools in a complex - and then the probability of closing a deal with a profit will increase significantly.
Have a good trade!
