A good trading plan is not about predicting the market, but about knowing what to do and what not to do in different states.

Step 1: Confirm the trend direction.

First, determine the current market state: uptrend, downtrend, or sideways.

Uptrend → Only consider long opportunities
Downtrend → Only consider short opportunities
Sideways market → Long on dips or wait for a breakout

Step 2: Assess the price position

Having the right direction is not enough; you also need to check if the "position" is reasonable.

In an uptrend, only go long if the price is above support.
In a downtrend, only go short if the price is below resistance.
In other cases, it's better to miss the trade than to force it.

Step 3: Execution and restraint
A trading plan is not about making frequent trades but about filtering out 90% of the noise.