This checklist is designed to help you perform a thorough analysis of the market to make informed trading decisions. It encompasses a range of technical and fundamental questions that should be considered before entering a trade.
Market Overview and Direction
1. What is the overall direction of the market?
2. What are the directions of various market sectors?
3. What are the weekly and monthly charts showing?
4. Are the major, intermediate, and minor trends moving up, down, or sideways?
5. Where are the important support and resistance levels?
6. Where are the important trendlines or channels?
7. Is volume and open interest confirming the price action?
Technical Pattern Recognition
8. Where are the 33%, 50%, and 66% retracements?
9. Are there any price gaps, and what type are they?
10. Are there any major reversal patterns visible?
11. Are there any continuation patterns visible?
12. What are the price objectives from those patterns?
13. Which direction are the moving averages pointing?
Oscillators and Indicators
14. Are the oscillators overbought or oversold?
15. Are there any divergences apparent on the oscillators?
16. Are contrary opinion numbers showing any extremes?
Advanced Technical Analysis
17. What is the Elliott Wave pattern showing?
18. Are there any obvious 3 or 5 wave patterns?
19. What about Fibonacci retracements or projections?
20. Are there any cycle tops or bottoms due?
21. Is the market showing right or left translation?
Trend Analysis Tools
22. Which way is the computer trend moving: up, down, or sideways?
23. What are the point and figure charts or candlestick patterns showing?
Trade Setup and Risk Management
Once you’ve arrived at a bullish or bearish conclusion, ask yourself the following questions:
1. What is the market’s likely trend over the next several months?
2. Am I going to buy or sell this market?
3. How many units will I trade?
4. How much am I prepared to risk if I’m wrong?
5. What is my profit objective?
6. Where will I enter the market?
7. What type of order will I use?
8. Where will I place my protective stop?
This comprehensive analysis will help you assess the market conditions from all angles and develop a well-thought-out strategy before making any trading decisions.
__________________________________________________________________________________
Reference:
Murphy, John J. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance), p. 455.
Market Overview and Direction
1. What is the overall direction of the market?
2. What are the directions of various market sectors?
3. What are the weekly and monthly charts showing?
4. Are the major, intermediate, and minor trends moving up, down, or sideways?
5. Where are the important support and resistance levels?
6. Where are the important trendlines or channels?
7. Is volume and open interest confirming the price action?
Technical Pattern Recognition
8. Where are the 33%, 50%, and 66% retracements?
9. Are there any price gaps, and what type are they?
10. Are there any major reversal patterns visible?
11. Are there any continuation patterns visible?
12. What are the price objectives from those patterns?
13. Which direction are the moving averages pointing?
Oscillators and Indicators
14. Are the oscillators overbought or oversold?
15. Are there any divergences apparent on the oscillators?
16. Are contrary opinion numbers showing any extremes?
Advanced Technical Analysis
17. What is the Elliott Wave pattern showing?
18. Are there any obvious 3 or 5 wave patterns?
19. What about Fibonacci retracements or projections?
20. Are there any cycle tops or bottoms due?
21. Is the market showing right or left translation?
Trend Analysis Tools
22. Which way is the computer trend moving: up, down, or sideways?
23. What are the point and figure charts or candlestick patterns showing?
Trade Setup and Risk Management
Once you’ve arrived at a bullish or bearish conclusion, ask yourself the following questions:
1. What is the market’s likely trend over the next several months?
2. Am I going to buy or sell this market?
3. How many units will I trade?
4. How much am I prepared to risk if I’m wrong?
5. What is my profit objective?
6. Where will I enter the market?
7. What type of order will I use?
8. Where will I place my protective stop?
This comprehensive analysis will help you assess the market conditions from all angles and develop a well-thought-out strategy before making any trading decisions.
__________________________________________________________________________________
Reference:
Murphy, John J. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance), p. 455.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.