Most traders are constantly looking for levels which price will reverse and regularly they never find them, but they do find stop losses.
(This originally came from not knowing exactly where orders are placed).
Markets have their phases, and it is pointless to look for an inversion when the trend is strongly bullish or vice versa.
It would be an idiot attitude.
When you trade in the direction of the trend you know that the market has some strength in that direction, but when it comes to countertrend trading you can never know whether it’s a retracement or a real reversal
Remember that the continuations are more than one while the inversion is just one.
So you have the statistics on your side
I’m definitely not saying that you should never enter countertrend, even better…
But if you are a novice trader, in the most delicate period of training for your future career as a professional, is certainly more productive and easy to follow the trend.
Once you have established the market phase, and where the orders of big investors are located, you have nothing to fear. You will know how to use the right techniques at the right time.
The Wall Street secret is about knowledge.