One rule that's kept me out of a lot of bad trades is by using a moving average as a pivot to define whether I'm long or short


Above high time frame moving average = look for long setups
Below low time frame moving average = look for short setups
Path of least resistance = fewer trouble areas
On trend = buyers/sellers on your side/in control
Example
If you are looking for longs but the price is below the daily 50 100 and 200 MAs. Lets say they all fall between $50-60. Your entry is $40. Target is $70. The moving averages act like a wall without taking into account the normal supply levels. Not to mention, your invalidation point is weaker as you essentially have fewer people willing to step in below your entry
Take the same trade but move those 3 moving averages to the $30-40 level. Your invalidation point is much stronger as there's traders likely to step in when it hits them below your entey. Upside is easier to navigate and has a higher chance of breaking through supply levels without moving average traders stepping in the way
This has been a staple for me over the years and I still use it religiously to filter strength and weakness. Simple often works best
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