Screen checklist
Pivots, previous day high/low
Price Action chekclist
First Basic Analysis:
Where are the most recent swings?
Where is the expectation (S/R level) in the direction of the trend?
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Getting in at the right point what does this mean to how hard the trade should be to manage (Investigate)? How close to the point it is not normally going to be perfect
Grade the trade low probability/High probability? Grade the previous price action trades
This is discretionary trading but I need to come up with a basic set of rules for now:
What are we counting as a level e.g. at least 2 swings where price has stopped or a naked swing high low i.e. the high or low of the day at that time
When is the trend broken e.g. when it breaks the previous swing high/low with force by a good amount i.e. 10 pips then we are looking for a pullback in the new direction with the expectation to test the next level
Careful when you have a level or a zone e.g. a zone is several swings stopping in an area a level is swings stopping almost to the pip. You have to adjust trading size and stops accordingly and allow for extra room for a zone trade to breath
How do you define a rotational period? e.g. 3 consecutive swings on both sides stopping in a level or zone
In a rotational period what side do you then have a bias for do you use the bigger 3m picture to help and go with the bigger swing bias?
You have to be careful when looking at the bias changing as its breaking a swing but is it also then testing the next level always bear in mind has it broken the previous swing which is therefore bias change but at the same time is it testing the next expectation level?
With the test you then go with the expectation of the level holding
On a change of bias what happens when the next swing up or down can't break the previous! This is important
Is it important to have scenarios for both an upwards and a downwards move from this situation
After it breaks above a range and confirms trend it may swing down and then move up to test that naked swing, should this be treated as a normal test?
On tests look for price acceptance above/below the level
Think is this a high or low probability set up
Be intuitive watch the depth of the pullback not just where the swings reach
You have to know when to say no bias stand aside for a clearer move
Look at the difference between when to use the bias/swings on the 3m and when to use the 1m look at todays action remember to look at expectation and when we get to a level we are expecting a test and the test to hold.
In depth analysis of Friday trading
In depth swing analysis
