Here are some practical steps to improve your *win-rate* (winning percentage) in trading based on *technical analysis*:
1. *Design and Test Strategy (Backtesting)*
- Gather historical data (candles, volume) on the timeframe you use.
- Code or note entry-exit rules, for example: MA crossover, breakout levels, or RSI divergence.
- Run simulations to see the win ratio, drawdown, and expected return before applying it live.
2. *Use Indicator Confluence*
- Don’t rely on a single indicator. Combine 2-3 supporting signals, for example:
- SMA 50/200 crossover + MACD histogram above zero
- Fibonacci retracement level + candlestick reversal confirmation (pin bar, engulfing)
- Confluence strengthens the probability of the setup.
3. *Multi-Timeframe Analysis*
- Ensure the trend in the _higher timeframe_ (H4/D1) aligns with the signals in the _lower timeframe_ (M15/H1).
- Enter when the short-term direction confirms the long-term direction.
4. *Strict Risk Management*
- Limit risk per trade to a maximum of 1-2% of capital.
- Use stop-loss based on ATR (Average True Range) or the latest swing.
- Set rational take-profit levels (e.g., risk:reward ≥ 1:2) so that one win can cover two losses.
5. *Trading Journal and Regular Evaluation*
- Record each trade: date, instrument, setup, result, psychology at entry/exit.
- Weekly/monthly evaluation: error patterns (e.g., often getting caught in whipsaw) and the influence of technical parameters.
6. *Discipline and Emotion*
- Follow the trading plan without increasing position size amid losses.
- Avoid _overtrading_—stick to quality setups, not frequency.
7. *Periodic Optimization*
- After 100+ trades, reanalyze parameters (MA period, support/resistance levels).
- Avoid _curve fitting_—seek a balance between flexibility and stability of the strategy.