How To Have An Edge Over The Markets!
2024-10-08

Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.

Today I want to share a basic trading plan that you can follow to quantify your trading edge.

 📌Step 1: 

First, start from the higher timeframes like Daily/Weekly to identify the current long-term trend. is it bullish, bearish or stuck inside a range?

If the price is sitting in the middle of nowhere, then it is a NO trade zone as price has 50% change to go either up or down. Thus no edge!

📚Wait for the price to approach the lower bound or upper bound. Then proceed to Step 2

 📌Step 2: 

No matter how strong a horizontal / non-horizontal support or resistance is, it can still be broken. Thus don't buy/sell blindly as price approaches a support/resistance.

Instead, zoom in to lower timeframes like H1 and M30 to look for setups.

 🏹A basic approach  would be to wait for a swing low to be broken downward around a resistance as a signal that the bears are taking over.

In parallel, wait for a swing high to be broken upward around a support for the bulls to take over.

This would be the confirmation to enter the trade.

⚙️Of course, your second edge would be through risk management by targeting at least double than your indented risk.

But that's a topic for another post 😉

 Always follow your trading plan regarding entry, risk management, and trade management.

Hope you find the content of this post useful 🙏

All Strategies Are Good; If Managed Properly!
~Rich