uting a trade:

When trading you have to wait for some sort of set up or something on the chart giving you a distinct sign (whatever it may be) that also provides a clear invalidation

$SOL 1H for example we had a downtrend break with wick to key support and a bullish engulfing candle on high volume

All reasons to believe price could go up from there but also a clear level of invalidation of price breaks back below

This provides conviction and a trade set up. Bullish bias with price above the candle base (Notes in chart) and a target would be the next main resistance above.

Once you have your conviction, your invalidation and your target (with a favorable R:R calculated) - [R:R in this scenario is 1:5] then you can ute a trade.