Good Holiday’s everyone. I hope that most of you are enjoying your holidays right now instead of trading. If some of you does still trades, you probably wont get much out of it. December is a month where liquidity tends to be less and even the volume might get squeezed. So it’s a month of learning , practice on demo’s and even discovering something new to your trading system as a further improvement in the long run. It’s a business. That’s just how you manage a business, Maximising your profit in the long run.
I am giving you all free tips here on How you should you scan your charts every week. It is imperative always look at the higher time frame charts first.
Notice on the WEEKLY chart on the left TOP. Start from there.. 3 sec look what do you see ? 1. It is entering a supply zone and last week close price action tell’s me its a pin bar. Sellers starts attacking last week. Then you look in the middle is a daily chart. Again 3 sec look.
What do you see ? The uptrend is reacting near resistance or area of supply. It rejected the area as if forming the famous known technical term double top. Possible shift in trends.
Then look further on the top right. The 4H chart. Entry area. I entered it last week on the pull back of the Engulfing bar Currently the Price is moving below the 20 EMA. All i need to see right now is to confirm a bearish bias momentum build up this week. Currently its corrective towards the 20 EMA ( a dynamic resistance ) . short term day trader, I would be looking for any corrective pullbacks from any fresh breakouts or smaller TF fresh supplies.
The bottom part of the charts are day trading Time frames. the H1 and 5 min. With the 5 min I may change it sometimes to 15 min. The middle bottom chart is my USD index referrence guide or also I called it my additional odd enhancer.
The usd index coincide with the demand reaction with a pin bar off a weekly demand zone.
SO now it is easy to determine this week what you want to do with the EURUSD pair.
1. Short for any pull backs
2. Short from any fresh supplies in the smaller tf ( look each session especially London session )
That’s it. You just laid out your plan and execute when price arrive to your intended entry. Stick with the management of risk. Laid out your trade management when to move your SL. Finally if you successfully execute a trade this week and profit from it, journal and review.
These are the jobs that you routinely do every week really as a trader. Your first impression is your actual trade decision. Don’t go over it again and again where confusion and doubts will creep in.
You can try and backtest this, it is easy. Remember to do a pre warm up to make your self positive and give 110% during Trading.
Have a happy holiday to all of you.!!