Its good to always know the dangers around you and what you plan to do if "x" happens.
Helps in target projection ( realistic / appropriate) Appropriate Risk calibration and just knowing where you are in the grand scheme of things (sub-trend).
most importantly-
IT ALLOWS YOU TO PAUSE AND THINK
(questions to consider in planning)
- is it worth the risk to go long right up against this 50% fib retracement zone, pivot point etc? - am I walking right into a trap and allowing greed to over ride all analysis (winging it/hoping/CHASING)? - am i buying right into new high ground? am I selling right into new low ground? (CHASING) - Does the current supply/demand state/ location in the trading range (TR) justify my bias long or short? - Are there any DIVERGENCES between price and volume? - any miscellaneous considerations? (hype, twitter, trump.. etc)
.... Don't rush to failure.
“Patience is key to success not speed. Time is a cunning speculators best friend if he uses it right”
Jesse Livermore
Sources of education: Tom Williams Volume spread analysis VSA/ Master the Markets Richard Wyckoff Pete Faders VSA Read the ticker dot com Dee Nixon BTC trading challenge price action/volume techniques