EURUSD - 11 Steps to successfully place a Trade - with MTFA Hi Traders!
The EURUSD is in an overall Uptrend.
Firstly, let's find out what the 11 Steps are and why they're so important:
We seperated the Steps into two categories, the "Outside the Watchlist" part and the "Analysing the pair" part.
"Outside the Watchlist" --> This is the way of analysing. You should already have it in your mind.
So, you don't want to trade just "anything", you have a specific setup for which you must have the rules.
These rules contains the minimum Risk-to-Reward ratio, Market, Trending Stage, Timeframe, etc.
A: Detect the Trend:
If you don't know the trend, you don't know in which direction you want to trade.
It's just trying to find a restaurant without opening your Map. You have to declare the direction before you start to drive.
For declaring, you must analyse whether it is:
- in a Trend
- a Channel or
- a Range.
B: Do your MTFA
You have to know at which situation you are in the big picture to know what to do wisely in the shortterm Timeframe.
Imagine you hear a boy shouting: "I have an A+ in the last test!"
Do you know whether he is a good or a bad student just by hearing this sentence?
It could be his first A+ in this year or the ninth in a row.
C: NEVER BREAK YOUR RULES
There are hundreds and hundreds of Pro-Traders telling you exactly that. And the most of them are successful Traders.
There must be a reason behind it. If you aren't convinced, go and try it on your own. We wouldn't recommend that.
"Analysing the pair" --> Now after you understood the main points of the main structure, we can go deeper and
start analysing the pair.
1: Find Structure Levels:
Find Levels, which other Traders might consider too. Don't forget that there could be a reaction, both good and bad
for you. In addition, it is important to reduce to the main things only to keep a clear view at the market situation.
2: Detect usual behavior:
As mentioned before, you're looking for a specific trading setup.
When you back-/fortested it enough times, you can identify certain patterns, behaviors and effects.
For example, you noticed that after a Trend with a Trendline there is often a short Range with a Consolidation Box.
And after the Consolidation Box it turns over and moves down. So, you wait for a Range after a Trendline-Break.
3: Mark up for an Entry Trigger:
So, we already determined the usual behavior: It's the emergence of a Range.
Now you mark up the characteristic Levels of the Range: Support and Resistance.
Because you want to sell the market, you declare the Break of Support to your Entry Trigger.
4 & 5: Setting the TP and the SL
After declaring the Entry Trigger, you must now where and when to exit before you even place the trade.
For example: You get on the train. Do you think about getting off the train after you already entered?
Hopefully not! And that's the same for Trading.
6: Put the TP & SL into a Position Size Calculator
Now it is getting intresting. The first part was just theoretical.
But we want to actually trade the price. No later than entering your trade after the Entry Trigger
you have to set the Lot size. The problem is, that by not setting an equal Lotsize,
the calculation of the Risk-to-Reward ratio cannot mean anything.
If you risk more $ on one trade
and than on the other and both have the same risk-to-reward ratio, you could still lose money.
That's the failure of Money Management.
7: Wait for the Entry Trigger
This is a point which many Educators doesn't mention. It is a big danger to trade the price before the
market triggers the Entry Trigger. Because if you enter too early, chances are that the market
moves against you, because it is still tending to other Direction.
8: Place the Trade
Now you can be happy. You considered all the rules, you even waited for the Entry Trigger, you calculated your risk
and finally you can place the Trade. Even if it hits your SL : Be happy that this trade did not break any of these rules
and be proud of the preparation of it!
These were the 11 Steps on how to successfully place a Trade. We hope we helped you and that you learned something new.
If something is unclear, please don't hesitate to ask your question .
When you want to give Feedback or critizise anything important, please do that too!
Now we're going to share the screenshots of the MTFA. If you want to know more about anything, please let us know!
The timeframes are: Weekly Timeframe, Daily Timeframe, H4-Timeframe and H1-Timeframe.
Weekly:
Daily:
H4:
H1:
We recommend to trade the Break of the Trendline and the Range in combination with a candlestick pattern.
Thanks and successful Trading :)!
