1. Basic Plan

The screenshot below shows the final outcome. The price did move higher, back into the Daily supply zone that we identified at the beginning of this article. When it comes to exit strategies, traders can choose between different options, depending on the overall trading approach: As already mentioned multiple times during this article, picking one…

When taking the trade entry, the position size calculation must be done as well. The common mistake here is that a trader will choose the same contract size for all trades. This convenient shortcut can lead to dramatic differences in relative position size. Let me explain. In the Forex, Crypto, or Futures market, different instruments…

The screenshot below shows that the if-then trading plan scenario is unfolding as anticipated. At this point, the price is generating a trade entry signal. Now, the trader must follow the trading plan rules for stop loss and take profit placement. Most traders spend all their time and energy obsessing about the perfect entry but…

Although the higher timeframe suggests an overall bullish trend environment, jumping into long trades without performing a lower timeframe analysis is typically not the recommended approach. On the lower timeframe, traders look for specific entry criteria and create a trading plan around their chosen strategy rules. There is a sheer endless variety of trading strategies a trader…

Typically, the price analysis starts on the higher timeframe to get an overall idea of the general chart context and determine the trend environment. Many traders choose the Daily timeframe as their higher timeframe. The Daily timeframe is a suitable option as a higher timeframe for day traders, but it can also be used for…