1. Are your plots related to the present value?
Alright, look.
If the present market value is right here:
There’s no level in plotting each single help & resistance and development line you see.
Why?
As a result of by the point you get out of your commerce, there’s a low likelihood that value is prone to attain these ranges anyway!
Additionally, having an excessive amount of “info” in your chart offers you too many pointless choices when deciding when to enter a commerce, subsequently degrading the end result of your buying and selling choices.
As a substitute…
Preserve your charts clear and know why your traces are there.
So clear, so good, am I proper?
2. Is your buying and selling setup easy and related to the present market situation?
After you’ve plotted related traces in your chart, what’s subsequent?
Know whether or not it’s in an uptrend, downtrend, or vary.
Taking a look at GBPJPY on the day by day timeframe:
You’ll be able to see that the worth has damaged out of its vary.
Now, wanting on the present value, what’s the “present” state of this foreign exchange pair?
Nicely?
It’s about to be in an uptrend, so if you wish to hop onto the development, then having a breakout setup may be your superpower:
Need yet another instance?
Certain.
Right here’s EURCHF on the 4-hour timeframe:
Now that’s one uneven market.
However what’s the very first thing it’s best to do?
Appropriate, plot out related traces!
Subsequent, what buying and selling setups are acceptable for this type of market situation?
That’s proper, coming into on pullbacks (shopping for at help, and promoting at resistance):
There you go!
3. Are there barely any conflicting details about your commerce?
To be sincere…
You’re all set with the primary two.
Nevertheless, not solely it’s essential to know when to enter trades, but in addition how you can ignore them.
Sure, in each single chart that you will notice, it’s essential to have the “walk-away” energy.
What does that imply?
It signifies that whenever you’re doubtful, you received’t hesitate to remain out and skip the commerce (even when it’d go in your favor).
Let me share with you an instance…
As you’ll be able to see on USDZAR on the day by day timeframe:
You may have noticed a pleasant breakout sign.
Nevertheless, the worth is at present approaching an space of resistance (a spot the place potential sellers may are available) whereas the final course of this market is in a downtrend.
So proper now, you’ll be able to see that there are a number of components “in opposition to” your buying and selling thought.
What do you do?
Appropriate. Ignore the commerce and keep out!
Good trades occur when choices are made swiftly with out hesitation.
Do not forget that!
So with that stated…
What’s subsequent?
How do you “take a look at” this?
One phrase…
Repetition.
Sure, I’ve shared with you a number of charts as we speak.
However in the actual world of buying and selling, each chart you see will tremendously fluctuate from one another.
It’s why I’ve shared with you a 3-step framework to make choices higher as a value motion dealer.
So, as you at the moment are previous costs (backtesting) right here’s what you could do subsequent.
Screenshot your trades and evaluate your thought-process
Taking a screenshot as you enter your commerce is useful because it encapsulates your thought course of when deciding on trades (and likewise it helps you take a look at the framework that I’ve proven you).
Every screenshot doesn’t need to be difficult for every commerce, it may be so simple as this:
Easy and clear!
Now as a normal guideline, I extremely recommend you at the very least:
- Produce greater than 100 historic trades with screenshots of your thought course of
- A most of 10 trades per market (so that you simply’re capable of be uncovered to various kinds of the market)
- Have a buying and selling software program or platform that hides costs by default (to keep away from being biased)
There you go!
However earlier than I finish…
Let me share with you a few buying and selling instruments that you need to use to manually follow the 3-step framework that I’ve shared with you.
