To be more concrete: whenever you're retreating like that, reflect as to whether you're doing so for a planned (and actual legitimate) reason. Collecting your thoughts, deliberately killing time in a prolonged round, lowering stun, waiting for meter, avoiding mix-up shenanigans et cetera. Otherwise slowly push forward (making Dhalsim's limbs and drills increasingly less safe) or hold your ground the best you can if patience seems like a logical course of action. You evidently understood the general idea of how to make a Dhalsim second-guess and capitalize on openings, but from my perspective your in-game body language displayed less confidence during GF losses than in those from the WF set, which seasoned players such as Snafoo likely notice in seconds.
Yeah, thanks, it's what you're saying. Straight up, Dhalsim's limbs frightened me, and I talked to Snafoo a lot about it afterwards. Basically, I didn't have any big plan for backing away like I did and it just came down to me being scared, and getting myself cornered for no good reason.
Essentially, the main answer is for me to push forward. Naturally, this is what Mika seeks versus Dhalsim. I have to learn to fear his limbs less. I like backing away just out of range to whiff punish, but that's not good enough, especially when it means slowly putting myself in the corner once more.
Dhalsim's st.MK has a 10f startup and a -4 recovery on block, 0 on hit. This means that if he hits me clean with it, he's got another 10f to deliver another one if he's just mashing it out. 14f if I block it. It doesn't really get me anywhere to try to block the first one and walk a bit before the next one lands. However, within that time frame, there are multiple buttons I could push to counter poke his next st.MK; cr.MK is a good one, with a 7f startup.
This is just one example. Once I learn the proper means of dispelling my fear of the limbs by actually responding to them and punishing them as I advance, the Dhalsim won't just be able to control the space freely and they'll be forced to hold back. Which will give me the room to get closer.
Then there's the fireball... well, one thing at a time. I've got a clear idea of what I need to go into Training mode to refine now.