How to determine the overall direction of the currency before opening any trade?

📌 A successful trader does not enter the market without knowing the overall direction. Here’s a simplified method to determine it:

1. Start with the larger timeframe (4H or Daily):

Look at the bigger picture. Is the price making higher highs and higher lows? This means an uptrend.

Is it making lower highs and lower lows? This means a downtrend.

$SOL

SOL

148.77

+2.47%

2. Use moving averages (like MA 50 and MA 200):

If the price is above both averages = the trend is up.

If it is below both = the trend is down.

3. Use a trendline:

Draw a line connecting the lows or highs. Breaking or respecting it confirms the trend.

4. Don’t forget trading volume:

Strong trend = high volume supporting it.

Why is this important?

Because when you trade with the trend, you increase the chances of profit and reduce the chances of loss.