What should be my daily routine for looking at price action? Should I first thing print off my charts (daily) and look for key s&r lines then go down to 4h and adjust my lines accordingly identifying any new ones? Then look at trading within these channels looking for reversals based on candlestick formations?
I’m trying to discipline myself into a routine. Any help greatly appreciated
James
Daily routine is simple. Just see where price is going and trade in that direction. If price is going up buy. If its going down then sell. This is what price action is. Very easy. should not take longer then 5 mins a morning to scan through the charts looking for good price action.
This plan looks good as long as it fits your own schedule and you won’t find it hard to maintain your routine. Maybe you can also add checking economic calendars or market updates once in a while just so you’ll be more prepared with the setups that you take.
Well its day 2 and i’ve managed to assess my support/resistance lines. Thanks for the pointers and support. One quick question, how much reliance do you place on candlestick signals i.e.doji, hammer, engulfing etc.? Is it a matter of understanding what they mean by analysing and assessing past charts to see if they really do repeat themselves and can be applied to the entry/exits?
James.
I generally look at candlesticks as confirmation for entries on short-term time frames and as indications of potential reversal or continuation on longer-term time frames. They say the reasoning behind technical analysis in predicting future price action is that history tends to repeat itself. This tends to be a self-fulfilling phenomenon too, since traders often go for reversals when they see dojis or hammers, etc. Just my two cents!
I do rely on them, but never on their own. I use them together with other parts of my analysis. You should never trade based on one signal and it is always best to have it confirmed by different signals you get from your analysis.