Step 1: First, look at the trend and the state of the market. There are generally three outcomes for a major market movement: rising, sideways, and falling. What is a major market movement? Look at charts with a period of 4 hours or more, such as 4-hour, daily, or weekly charts (my personal habit is to look at 4 hours). When the market is rising, take long positions. When it's falling, take short positions. If the market is in a sideways state, don't make any trades. If the current market is sideways, just do what you need to do!
Step 2: Identify key levels. Whether the market is rising or falling, it will jump like a bouncing ball, moving up or down step by step. What we need to do is enter the market at the jumping point and exit at the next landing point. Finding the precise steps becomes crucial, which is what we call key levels, mainly support and resistance levels. The purpose of identifying key levels is to determine which stage the current market is in: early, mid, or late? Does the target level meet your risk-reward ratio? We don't engage in losing trades; if the risk-reward ratio is less than or equal to 1:1 (losing only 1 dollar and winning only 1 dollar), then it's better to wait! If it is greater than 1:1, for example, 1:1.5 (losing only 1 dollar but winning 1.5 dollars).
Step 3: Look for signals. Generally, if you find a market movement in a larger time frame, you should look for trade signals in a smaller time frame. Everyone has different strengths in trading strategies; some are good at AK47 strategies, some at M5, some at handguns, and some at sniper rifles. Even if you are good at everything, you can't take all your weapons to the battlefield! So, mastering 1-2 strategies thoroughly can still get the job done. Some are good at moving averages, some at trend lines, some at MACD, some at Bollinger Bands, some at RSI, some at KDJ, and some at naked candlesticks. All of these are valid, as long as you find the right entry signal!