The Authority’ on Price Action Trading. Why forex news is important for the traders 2016, Nial won the Million Dollar Trader Competition. I mean is, most of your time spent in front of the charts should be on the weekend.
During the week, I will monitor the market lightly each day, maybe 10 to 15 minutes at the start and end of the day. If there is something to do that meshes with my weekend-analysis, I will place the orders and walk the hell away from the charts until tomorrow. So, what does my weekend analysis look like? What do I ACTUALLY do, you might be wondering. Essentially, what I am doing is reading the story on the chart and mapping the market from left to right. You see, the end of the week means something in the market. In fact, it’s very important because it shows an entire 5 days or 1 week of trading in the market, showing who won the battle between bulls and bears that week.
The market will have shown part of its hand at week’s close and there is far more weight behind where the market closes on a Friday compared to any other day of the week. In other words, using the weekly and daily chart to get the complete picture and then develop your approach from that. Another big reason why this end-of-week analysis approach works so well is that it contributes to a low frequency trading approach, something I have written about quite extensively in various lessons over the years. When you trade less, it improves your trading performance over the long-run, and there are many studies that show this. I explained in my recent article What is the weakest link in your trading?
The market is slower than we think, meaning good trades take time to play out, and over time you will agree. Here is a summary version of my trading routine My weekly and daily trading routine is a lot less complicated than you probably think. First off, as I’ve written about in a recent article on the power of trading routines, the most important thing to remember here is that all of this has become a HABIT for me. You must develop the proper trading habits if you want to become a successful trader, as in any other profession. The discussion that follows is basically a step-by-step explanation of how I create my weekly members market outlook, which, coincidentally, was something I was doing BEFORE I ever had any students. The very first thing you should know is that I don’t look at every Forex pair, not even close. The first thing I do is open my charts and look at the weekly time frame to plot the key levels and to get a good bird’s eye view of the long-term market trend.
In the chart example below, I have drawn in the key support and resistance levels and I’ve marked on the chart the obvious overall trend of the market, so you can see what I am thinking when I look at it. We are drawing in any obvious support or resistance levels that perhaps were not obvious on the weekly chart. Scan for any obvious price action signals for potential trade entries. Note: If the daily chart is sideways, always refer up to the weekly chart for which direction you should look to trade in.