This is where you plan your trade. You must complete this entire section BEFORE entering a trade. A
Market Analysis
Trade Setup
- Analyze price charts for patterns.
- Look for areas of price consolidation.
- Consider Fibonacci retracement levels.
- Use previous highs and lows as reference.
- Evaluate entry signals from technical indicators.
- Set stop loss below support for long trades.
- Set stop loss above resistance for short trades.
- Define take profit based on risk-reward ratio.
- Use volatility measures to adjust levels.
- Ensure levels align with your trading strategy.
- Calculate risk per trade as a percentage.
- Determine dollar amount at risk for the trade.
- Use position sizing formulas to find size.
- Adjust position size based on account balance.
- Ensure size complies with risk management rules.
- Review longer-term charts for trend analysis.
- Identify higher highs and higher lows for bullish.
- Spot lower highs and lower lows for bearish.
- Consider using trend lines for clarity.
- Confirm trend with moving averages.
- Locate historical price levels where reversals occurred.
- Draw horizontal lines at these levels on charts.
- Use pivot points for additional reference.
- Observe volume spikes at these levels.
- Check for confluence with other indicators.
- Decide based on your trading style and goals.
- Analyze market conditions for chosen timeframe.
- Adjust strategy according to timeframe volatility.
- Consider how news events might affect trades.
- Ensure your analysis aligns with the timeframe.
- Review your trading plan for consistency.
- Ensure entry signals match your strategy criteria.
- Check if trade setups adhere to rules.
- Evaluate risk-reward ratio in context of strategy.
- Confirm alignment with trading journal notes.
- Review economic calendars for scheduled events.
- Analyze potential market impact of news.
- Consider avoiding trades during high-impact releases.
- Set alerts for relevant news updates.
- Assess sentiment surrounding upcoming events.
- Use multiple indicators for stronger confirmation.
- Check if indicators signal overbought or oversold conditions.
- Look for crossovers in moving averages.
- Ensure indicators align with entry points.
- Evaluate divergences for potential trend reversals.
- Identify assets that typically move together.
- Evaluate potential impact of correlated assets on trade.
- Use correlation coefficients for analysis.
- Consider hedging positions if necessary.
- Monitor correlations for changes before trading.
- Define criteria for exiting trades before entering.
- Set specific price levels for exits.
- Include rules for emotional responses to losses.
- Consider trailing stops for profit capture.
- Reassess strategy if market conditions change.
- Document trade rationale in your journal.
- Seek feedback from a mentor or trading group.
- Revisit past trades for learning opportunities.
- Ensure trade aligns with long-term goals.
- Adjust plans based on mentor's insights.
- Verify that trading platform is functioning properly.
- Ensure charts are set up with desired indicators.
- Check internet connection for reliability.
- Review order types available for execution.
- Prepare any additional tools needed for analysis.
Use in Manifestly