Hey, here I come again. The market is still bearish today.
Continuing today: The third element of high winning rate: time frame and liquidity
Highly liquid markets generally have tighter spreads and are easier to trade, lower liquidity can lead to slippage making it more difficult to enter and exit at the price you want. Therefore, executing your high-win rate plan in a market with low liquidity will be limited by objective factors.
The time frame you trade on can greatly impact your ability to identify high probability trade setups. Shorter time frames (such as 1 minute or 5 minute charts) typically contain more noise and can make identifying meaningful price patterns more difficult. challenge. Longer timeframes (such as the four-hour and daily charts) often provide a clearer picture of market trends and can make it easier to parse market trends, however trading longer timeframes also requires more patience as the trade takes longer time to complete.
To sum it up in one sentence: find a good environment and a good time period to implement.
In fact, no matter what strategy, it boils down to three questions.
1. What are your triggers - never look at indicators today and patterns tomorrow and news the day after tomorrow.
2. If you have a plan, will you execute it? If you have a plan but fail to execute it or if it fails the first time you execute it, you still cannot develop a pattern.
3. Find a good trading time for your strategy.
Seize the opportunity and win with one strike
