Common Errors and its Solution on trading

I need to write the key factors to remember to avoid error.

1. how to know if market will not create new higher high or lower low.

On this week experience I have traded Overbought already but then again despite it is on the overbought it created new one just like in this picture

Looking at the stochastic it just create another higher overbought price. To detect this kind of error it is important to use the support and resistance on different time frame. thats why when it is showing on stochastic that it is time to sell make sure to look on the previous price and identify the resistance. to better identify ALWAYS make a practice to change time frame and look at the support and resistance. if we change this on 4hrs time frame we could see it has a resistance that the market need to test. We could see the S Pattern.

this is the reason that trading on right trend is important not against the trend. unless you are skill full swing trader. or you have a very good reason to trade on opposite direction like double tap or patterns.

anyway this is the result on last week trade