Kardec Trader explains why you need a clear story before trading. Watch for market structure shifts: breaches of the last higher low in an uptrend or the last lower high in a downtrend. These shifts and liquidity catalysts are your real trade triggers.
If price is trending, for instance, and you're looking at a chart, there's really nothing for you to do here. Now what if price does this? Your thoughts are going to be percolated like, oh, there might be something for me to do here. Another thing that you might be looking for is market structure shift. When you have a trending market that is making higher highs and higher lows, what happens when the last higher low is breached? That is a market structure shift. When you are in a downtrend, you're making lower highs and lower lows, what happens when the last lower high is breached? That is a market structure shift. These are all catalysts that your eyes are looking, looking for. If you are just in a trending market, you're like, what trade can I take today? You can't. Nothing has happened for you to react to. You're looking for a liquidity callous in order to alert you of something. The other thing that I want to know is price trending or not? And that's it. If you don't have one or more of these things, I don't care what your strategy is, you do not have a story. If you don't have a story, you don't have a trade.
