How to be on the same side with the current trend?
1. Zoom out
Do not analyze the market on the timeframes less than 4H/Daily. This does not mean that you should start swing trading, hold positions longer that you usually do, enter less positions etc. The reason of zooming out is that it can give you an ability to see the entire picture and define a bias. Observing the market on these timeframes cuts off the market noise from you, keeps you safe from the volatile nature of the crypto market, protects you from being a victim of price manipulations, liquidity/stop loss order runs etc.
2. Determine the latest wiped liquidity pool
Important thing to mention - you should stay at the same timeframe (4H/Daily). Liquidity pool is a price level or price range where the most traders set their stop loss orders - previous highs/lows. Some traders put their stops a bit above/below highs and lows respectively. Futures traders often trade without stops, just take a look at the daily liquidations amount and number of rekt people. Taking that into consideration some of them choose the leverage to make the liquidation price higher/lower previous high and low.
3. Determine the next untouched liquidity pool
Everything written in the previous point are applicable to this one. Knowing where the price may go next allows you to define a bias and open positions in that direction.
