It’s surprising how many different ways there are to profit from the markets. But, weirdly, how few ways there are …that really work in alignment with a person’s personality, risk tolerance, etc.
Below is my own, personal “Trading Playbook” — or guide — on how I trade.
I trade mostly Forex – but this trading guide is fairly instrument independent.
I pay no attention to anything except price.
Look for confluence of factors:
#1 – Entry/Exit decisions based on DAILY timeframe only
#2 – Support + Resistance
#3 – Fib Retracement (50 or 62)
#4 – Round Number
#5 – Trendline
#6 – Specific Price Action Bar Pattern (Pinbar, Bullish Outside Bar, DBLHC, etc.)
#7 – The potential trade area must be recognized at least 24 hours in advanced
#8 – Price must have room to move – to first problem area – before entry is taken
The more of these occurring at the same time the better.
Fib, Round Number and Trendline are not critical.
The non-negotiables (currently) are: #1, #2, #6, #7 and #8.
Or, in words:
I must see a potential Support Resistance area, on a Daily Chart, at least one day in advance, entry must be with a Price Action Bar formation, and there must be room for price to move before hitting first problem area.