Many times I catch myself just staring at the charts or just flipping through them, not really looking at what it is telling me. This behavior might lead to either missing a trade or taking the wrong trade. I also have come to know that this is common among many traders, not having a system. Yes, I said it: system! I have a zero tolerance towards systems when it comes to trading and believe in clear, solid technical analyses with solid foundations. I will however be systematic when it comes to analyses!
Here is some key points you might want to try:
- Time Frame
- I start at bigger time frames to see where I am at in terms of trend, tops, bottoms, cycles etc. I then work myself closer to the action.
- Candle info
- I always look at formations, volatility, momentum and strength – on every time frame
- It is indeed your friend. Stay with trend of one time frame bigger. (Sell on a 4 hour in line with Daily trend etc)
- Supply and Demand
- Small areas where I see institutional buying and selling in the past will have my attention in the future.
- Traders trade price, the numbers on the right hand side of our charts we so easily forget.
- One at a time
- Don’t try and analyse 30 pairs in 1 hour. Look at one chart, don’t miss any info up the point where you have a feel of that market; then move on to the next.
- Read the info
- Technical analyses is to study the chart, feel it, get your plan in place and write it down.
Once you have the ideas on a monthly and weekly chart in place it is easy to stay up to date with the daily time frame and smaller intraday trends. You have done the hard work, believe in your plan and at the right time, execute.