How to Create Trades You Can Wait For #1

Why Do You Lose Even When The Direction Is Aligned

Hello. This is THE DAYTRADE.

Starting from this time, a new series“How to Create Trades You Can Wait For”begins.
Over 13 episodes,we will teach you the procedure to read higher timeframes and identify where to wait and where to enter.

In Episode 1, we start with a question that many people stumble on.

Why do you lose even though the daily, 4-hour, and 1-hour directions are aligned?

The Pitfall of “Enter When The Direction Is Aligned”

When you learn about multi-timeframe (looking at several timeframes together), you are first taught this:

“Let’s enter when the direction on the higher timeframe aligns.”

This is not a mistake.
Entering in the opposite direction on the higher timeframe makes it much harder to win.

But even if the directions are aligned, you may get moved the other way right after you enter.
Have you ever experienced that?

Even if the Direction Is Aligned, the “Location” Might Be Bad

The reason is,the direction is correct, but the location is bad.

For example, both the 1-hour and 4-hour timeframes are rising, so you buy.
But on the daily timeframe, you’re near thedaily retracement high(a high that tends to be sold into during a downward trend).

In such places, daily-timeframe selling tends to come in more easily.
The buys on the 1-hour and 4-hour timeframes get pushed back by daily selling.

Direction alignment and being in a good entry zone are separate considerations.

Why I Don’t Enter Just Because The Direction Aligns

I don’t enter just because the directions align.

If the higher timeframe looks like a retracement (pullback) setup, I will pass on it.
I have this as a clear standard.

The direction aligns.
Then I check whether, from the higher timeframe, the location is likely to move against me.
This two-step approach forms the foundation of a waiting trade.

What You Will Learn In This Series

• How to see “where you are now” on the daily chart
• Identify the pullback low and rebound high on the 4-hour chart
• Discern where the higher timeframe may cause a reversal (pullback)
• Decide how far to wait on the 1-hour and 5-minute charts
• Decide exits after entry using stop loss, break-even, and trailing stops
• Practice “omission” in past verifications

We will build one by one, in order.

What to Do Today

• Choose one recent losing trade
• Check whether the daily, 4-hour, and 1-hour directions were aligned at that time
• If aligned, see whether on the daily chart it was not a place where selling was likely (a place that could be sold into)

Summary

• Direction alone is not enough reason to enter
• Even if the direction is correct, the higher timeframe can show a bad location
• If the higher timeframe shows a place where the retracement (pullback) seems likely, pass
• Viewing in two stages—“direction” and “location”—forms the foundation of a waiting trade

Next time is #2 “Looking at ‘Where Am I Now’ on the Daily Chart.”

Pursue correctness over winning rate.
People who can wait are looking at the location.

▼ChartPen | MT4/MT5 drawing tool (¥980)
A tool that lets you write lines and text directly on the chart (Windows MT4/MT5). If you note reasons for passing on a trade on the chart, you can review later.
https://www.gogojungle.co.jp/re/oaxx7xNztnaAFo9

▼ Monthly Series “Chart Reading, Commentary, Comprehension, Verbalization” | ¥980 per month
For about 1 day 33 yen, you get morning market environment recognition and the previous day’s answers. All paid videos and articles worth 500 yen are unlimited.
・Morning Gold environment recognition video
・Previous day review (answer check) video
・Practical articles (about 2 per week)
・All past paid video articles unlimited
https://www.gogojungle.co.jp/re/WF1fctiVvx4gmNu

Note: Individual results may vary; this does not guarantee profits or the duration of learning.
Note: Trading involves loss risk. Results vary by individual, and profits are not guaranteed.