Questions you need to ask yourself in order to plan a trade

10th October 2013, 10:40 PM

First and foremost, ask yourself what kind of trader you are. You MUST choose your timeframe combo and
STICK to it.

Refer to the Timeframe Combinations Lesson to learn more about what type of trader you are. It's also
important that you review the Core Strategy Flow Chart created by one of the members (Robin), it's key
to understand supply and demand rules laid out in the lessons.

ASK YOURSELF THESE QUESTIONS BEFORE PLANNING A SWING TRADE (MN/WK/D1/H4 combo):

You must ask the charts the same questions over an over. See each chart as the ancient Greek Oracle
that has the answer to everything, you just have to ask and offer a sacrifice, your time. Ask the Monthly
Oracle the right questions, then the Weekly Oracle, they will always answer you. The questions are always
the same when it comes to spotting and drawing Supply and Demand zones:

1. Is the Monthly in a Downtrend or in an Uptrend? The answer will dictate which longer
term direction you want to trade for a position type of trade, long or short

2. Refer to How to define the trend lesson

3. What zone is in control? Supply or Demand?

• Is price bouncing off high/low in the SD Range with a supply or demand area in control?
Pay attention if price is already bouncing off your SD Range TF

• This is key. If price is bouncing off my SD Range TF, hit the proximal line and it's dropping
to 70%, does that mean I can buy because it's lower than 80%? No, your SD Range TF is in
control. It would be a different thing if price was bouncing off WK demand and it's now at
70%, with room to fresh (not in control) WK supply

4. Is the Weekly in a Downtrend or in an Uptrend? The answer will dictate which direction you want
to trade, long or short for a swing type of trade

5. What is the trend on the D1 timeframe? Don't go against the D1 trend, respect the D1 trend for
better odds

6. Which is the last valid Trendline that I can draw? Ascending (two valid valleys) or Descending
(two valid peaks). If you can't draw a TL or you have removed an opposing demand zone when in
an uptrend, then no TL is possible and price should be consolidating

7. Has the SD zone I've drawn removed an opposing SD area or broken a Trendline? SD price action
is a chain reaction, if you miss a link in the chain the whole analysis will be broken, ask the charts
those two questions to learn if a potential imbalance becomes a zone. Read the lesson on how to
validate a zone, also watch this short video that explains it visually
 8. Is current price high or low in my SD Range timeframe? It will tell you if you can keep on
buying/selling or stop doing it and start looking for an opposite trade. Refer to The SD Range
lesson lesson to learn about altitude in terms of %

9. Do I have enough room to my opposing SD SD range timeframe SD zone?

If I am too close to my SD Range TF, I must not trade against it

10. Is price too close or at my SD SD Range TF's 50% retracement? Diddle in the middle. Wait for
momentum to either direction and trade with the D1 trend, don't try to outsmart the market,
50% is used by many to exit their positions

11. Am I close to or reacting to a last week/month high/low (support or resistance area) or a higher
timeframe trendline hit?

0. The template shows red/blue beads on the charts. These beads are support and
resistance areas (WK/MN highs/lows)

1. If we are very close to them or reacting from them, stay away, don't trade, wait for a close
on D1 candle, or a brand new level created after those highs/lows are out of the way

IF THEN SCENARIO #1: too high in the MN SD Range

• Question 1: Is the Monthly in a Downtrend or an Uptrend? UP Trend

• Question 2: How high or low is current price in the Monthly timeframe? I am high in the MN SD
Range, 85%

• Question 3: Do I have enough room to Monthly supply? Yes, only 15%

• Question 4: Is MN supply or MN demand in control? Where is price bouncing off? Comes

bouncing off MN demand, MN demand in control

• Question 5: Am I close to a last Week/Month high/low or HTF trendline hit? No

• Question 6: Can I buy or sell? We're too high in the SD Range, it would be a bit aggressive, longs
could work. If you are aggressive, smaller lot sizeswould be advisable

IF THEN SCENARIO #2: low in the SD range, MN demand in control

• Question 1: Is the Monthly in a Downtrend or an Uptrend? UP Trend

• Question 2: How high or low is current price in the Monthly timeframe? I am low in the MN SD
range, 25%

• Question 3: Do I have enough room to MN supply? Yes, 75%

• Question 4: Is MN supply or MN demand in control? Where is price bouncing off? Price bouncing
off MN demand, MN demand in control

• Question 5: Am I close to a last Week/Month high/low or HTF trendline hit? No

• Question 6: Can I buy or sell? Buy all H4 levels of demand that follow the TL rules, or full D1
levels while the D1 TL is respected
IF THEN SCENARIO #3: middle of the SD Range, diddle in the middle, last month high

• Question 1: Is the Monthly TF in a Downtrend or in an Uptrend? DOWN Trend

• Question 2: How high or low is current price in my Monthly timeframe? I am in the middle of the
Monthly SD Range, 45%

• Question 3: Do I have enough room to Monthly demand? Yes, 45%

• Question 4: Is MN supply or MN demand in control? Where is price bouncing off? MN supply in

control, last month high (blue beads)

• Question 5: Am I close to a last Week/Month high/low or HTF trendline hit? Yes

• Question 6: Can I buy or sell? Do nothing. Wait. Diddle in the middle

These are the same questions you should always ask yourself over and over and OVER again. Create a
habit! Make a posit and place it where you can see it all the time