Post session review..
Today’s article is about post-session reviews, the one that keeps professionals far away from the herd. I repeat. Professionals do that every single day they trade. At least the ones that I know.
Before entering into the mambo jumbo of the post-session reviews, there is a prerequisite. You must totally understand the edge, to the dot. I mean every single concept you use in your trading. I have already published everything about my plan in the series.
If you don’t have an edge that’s not even generating breakeven results over the past 4-5 months, this article is not for you. Analyzing hindsight charts with the eyes given by a negative expectancy strategy does more bad than good as it develops the mindset to look for reasons to prove that you are right even when your stats prove the opposite. I have already mentioned long before about this and I would like to repeat it again,
“Your stats are the only truth in trading. Rest all are your opinions and beliefs.”
It’s not about being right or being wrong, it’s just about making money with decent stats over a long period of time.
Enough with the introduction. Let’s jump into the plane. Keep in mind that this is how I analyze hindsight charts and your procedure need not be the same way. But make sure whatever you do, make it organized and consistent so that you will not miss any information that can enhance the technical or psychological edge. I will take an example from last week to explain it step by step.
Step 1:- (Screenshot)
Take the screenshot of the TTF chart with HTF levels marked on it. (mine is 5mins.). I use PicPick for image editing and painting.
Step 2:-(Swing highs and lows)
This is a very very important step. Give alphabets to all the swing highs and swing lows starting from the left. Once this is properly done, it gives a clear idea about all the swings in that session which makes it easier for further analysis. The above charts look like this. You can see that I didn’t miss marking any of the swing high or swing low in the whole session of my focus.
Step 3:- (Swings)
Start from the left, ie. ‘A’ and note down the characteristics of all the swings. AB, BC, CD etc. I personally start the alphabets so that the first swing AB is always impulsive.
Step 4:- (Trend)
Start from the first swing at the left, ie. AB and try to establish the trend. Feel the trend changes, range confirmations and stuff till you reach the last alphabet in your chart. Don’t worry about the setups during this step.
Step 5:- (Ideal setups)
Once you got the characteristics of the swings, bias at all the points, it’s time to mark the ideal setups in the direction of the bias. Remember that the bias at a particular point must have reasons according to your trade plan document. But not something from your mind. The purpose of this whole process goes into vain otherwise. Also, make sure when you are looking at a particular point in the chart, don’t let the swings at the right of that point affect your analysis. It’s easier said than done especially if you are new to this whole thing.
The setups that you have marked must cover the following
Reasons for the bias. Why and how?
Strength of the trend at the point where you are marking the setup.
Type of the setup (PB/CPB/BOF/TST/BPB)
Swing faded. Corrective or impulsive? Reasons for calling it as corrective/impulsive. If impulsive, why did you fade and what signs market gave you to take a trade against strength at that point of time?
Entry-level. You can take help of the LTF if you need, but most of the time the levels can be seen from the TTF chart itself.
Some notes related to the price action around the level to time the entry. Even this has to come from your plan, not from your mind. (Candlestick analysis)
Now the end product looks like this.
In the above chart, I didn’t write a lot of notes I have talked about in this step by step procedure as it makes the chart clumsy. Also, I have been doing this for a long time and I can get the idea. But you should till you get some expertise in analyzing the charts.
There will be sessions where we will get only one ideal setup in the whole session like the following.
The ideal setups will not be winners all the time. But that’s a good loss to take like the following session. I absolutely have no problem in taking these losses as far as I stick to the money management plan.
I hope you got an idea about how it is done. Make sure it’s systematic and ritualistic.
Don’t think that it’s a very lengthy procedure looking at the size of this article. It doesn’t take more than 10-15mins end of every session. But keep in mind that you are competing with the ones that do some sort of post-market analysis every single day to sharpen the edge and skipping it out of laziness is not a good idea.
Finally, thanks to the one who requested me to write about this topic (don’t wanna reveal the name for obvious reasons 🙂 ). It will be helpful to all and I appreciate it.