{"id":393910,"date":"2020-08-21T11:41:57","date_gmt":"2020-08-21T09:41:57","guid":{"rendered":"https:\/\/ftmo.com\/?p=393910"},"modified":"2024-03-15T12:59:43","modified_gmt":"2024-03-15T11:59:43","slug":"trading-preparation-routine","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/trading-preparation-routine\/","title":{"rendered":"Trading preparation routine – How to do TOP-DOWN Forex Analysis"},"content":{"rendered":"

It is often said that being well prepared for the trading day is a battle half won. This cannot be far from the truth.\u00a0 You simply cannot jump to an empty chart, start trading right away and thinking you can profit. You need to have a plan. A trading plan. In this article, we’ll look at how to draw a simple trading plan directly on the chart and how you can implement it right away to start trading.<\/em><\/p>\n

Trading preparation routine – How to stay ahead of the game<\/h2>\n

All traders are different, you will hardly find two traders with the same strategy and view on the markets. Knowing that, we know we cannot satisfy everyone’s opinion but it’s ok.<\/span><\/p>\n

In this article, we are going to break down the chart of GBPUSD which is a heavily traded pair and we’ll use a simple price action with horizontal and diagonal support and resistance and also a volume profile to easily spot areas of heavy distribution and path of least resistance.<\/span><\/p>\n

All of our steps are going to be explained in depth so no worries, we are sure they are really easy to follow.<\/span><\/p>\n

Because the preparation is best done when markets are calm, weekends are best suited for the job.<\/span><\/p>\n

\"\"<\/a><\/p>\n

Weekly Chart<\/h2>\n

Since the majority of traders specialize in intra-day and intra-week trading, we are not going to a higher timeframe than weekly. Of course, monthly, quarterly or yearly charts can uncover some macro directional details but if executing your trades on the hourly timeframe, probably won’t be important to you.<\/span><\/p>\n

When looking at the weekly chart, we should always ask ourselves questions such as:<\/span><\/p>\n