My trade execution in a nutshell….
Price action is F@#$%^g frustrating today. So, for the sake of killing some time, I have taken a piece of paper and a pen to gather and jot down my trade execution steps. Then thought of keeping those steps in the blog so that it will be helpful to the readers including me if needed an urgent reference. Here it is.
Open the hourly chart and draw the structural boundaries.
Open the trading timeframe chart and identify the trend. If the trend is sideways, draw the range boundaries. If the trend is up/down, identify the trend violation pivot.
If the trend is up/down, identify the strength of the recent impulse swing and recent pullback using momentum and projection and depth analysis.
If the trend is sideways, perform the strength and weakness analysis on the swing approaching the range boundaries.
Identify the high probable future direction.
Identify the type of setup and LWP. PB/CPB/BPB/BOF/TST.
If the setup is PB/CPB, open the LTF chart and identify trap zones in the recent impulse swing and watch how the price is interacting with that level using LTF and TTF.
If the setup is BPB/BOF/TST, watch the price interaction with the boundaries using LTF and TTF.
Confirm weakness in price while approaching the setup price level.
Confirm that there is opposing order flow in the direction of the future bias at the setup location. rejection/stall/failure to continue etc..
Place a stop entry at the LWP if the breakout entry technique provides favourable risk to reward.
Track the LTF chart to work out a better entry with a limit order or LTF pattern trigger.
While working with limit orders, make sure price tests the rejection region with weakness before hitting the LWP. I am using market depth window for that purpose now. But range charts might work better for this purpose.
If price retests the rejection after hitting LWP, start from scratch. Wait for the rejection again as the previous premise is violated and then start working with limit entries.
When the limit entry is filled, watch the market closely until it hits LWP. See how the market is behaving immediately after hitting LWP and get ready to scratch if the behaviour is not what you expected.
Trail the stops on to the levels where you expect that the market will not touch if the premise remains valid while it is moving towards targets. You can use LTF charts for that purpose.
Confirm flat, free the mind, hunt for next opportunity. If there is none, update the journal.