Trading Concepts Compendium (8): Understanding "Trend Structure & Left-Side, Right-Side Trading" in One Article 💳

What is trend trading? What is the difference between left-side and right-side trading?

I believe this is a term that many beginners often see but do not know what it is.

It also allows everyone to better understand their strategic inclinations and needs📲

The following is the main text👇:

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First of all, the left side and the right side of trading itself is a concept of "spectrum."
He does not have absolute boundaries, but rather distinctions in degrees (leaning left or leaning right).

➡️ Left side: Confirmed signals are fewer, win rate is lower, potential profit is larger.
➡️ Right side: More confirmation signals, higher win rate, smaller potential profit.

I created a chart to clearly explain the trend structure and left and right side trading at once 📊

🔺Trend Structure (The above image is a "Downtrend")
➡️ Uptrend:
composed of consecutive Higher Highs (HH) and Higher Lows (HL)
➡️ Downtrend:
Composed of consecutive Lower Highs (LH) and Lower Lows (HL)

Taking the descending trend as an example, if at a certain moment, the Lower High is broken through,
This will create a "higher high," also known as Higher High (HH).
Although it is not possible to confirm a trend reversal at this time, this is a necessary process in the reversal process‼️

In this citation from "Professional Speculator Principles" by Victor Sperandeo,
The mentioned 123 rule (this article provides detailed explanation:

Taking the downward trend as an example (the upward trend is the opposite), in the 123 rule:
1: Create higher high points (HH)
2: The retracement does not break the previous low (Lower Low)
3: The HH created when breaking through "1"

When 1, 2, and 3 are completed in order, the trend reversal is established 📈

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🔺 Left side, right side
In conjunction with the above image, let me introduce a few entry scenarios:

1️⃣ Purple Zone:
Enter the market if a potential Stop Hunt signal appears, on the far left side.
📖 Stop Hunt Introduction:

2️⃣ Gray Area:
Higher High has not yet been created (1 of the 123 Rule),
But the small level retracement Stop Hunt area, second left side.

3️⃣ The "1" of the yellow 1:123 rule

4️⃣ Yellow 2:123 rule's "2", second on the right side

5️⃣ The "3" of the 123 rule in yellow, on the far right.

The above is just a case, and the concept I want to express is:
"The more confirmation signals there are when entering the market, the more it indicates to the right side; and vice versa."

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Of course, the above is just one way to define it.

There are many different ways to categorize in the market,
For example, using MA, EMA ... and other moving averages to distinguish between the left and right sides;
Or differentiate the left and right sides based on whether the MACD is above or below the zero axis.

However, as long as the trading system itself can be self-consistent and logical, and the expected value is positive,
It is a usable system✅

As for which is better or worse on the left and right sides, there is no standard answer.
Each different entry method has its advantages and disadvantages.

For example, when the price is very strong, it is likely to occur when 1 of the 123 rule appears,
There was a continuous and fierce surge, resulting in the absence of 2 and 3.
But if you enter the market at 1 every time, you may take on more uncertainty.

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That's all for today's content, hope it helps you!

As usual, any questions will be answered 🫡