Trading Check System
In the example below the 4 hour chart is in an uprtrend of higher highs and higher lows which then forms a double bottom as shown and we want to trade long on that pattern. For the current trend we record the uptrend in our trade log: -
Last higher timeframe candle & Trade Type
As we are trading the 4 hour chart we want to check the last candle on the higher timeframe so in this case that is the Daily chart/candle. We see it's bullish so we record bullish candle in our trade log: -
... and as we are trading long, we record that too: -
Now we look or higher highs and higher lows on multiple timeframes: -
Location = 4 hour chart as we are trading the 4 hour
Entry = the timerame below (hourly)
Directional = the timerame below (weekly)
In our case, all MA's are below the entry point so we dont record that as being true or our trade or example:-
The same question is now asked. Do we see any o the obstacles between the entry point and the stop loss level: -
Some o the MA's are so we record YES for that.
The hourly and Daily are making higher highs and higher lows, so we record YES: -
we are trading a double bottom so we record the chart pattern.
NEXT QUESTION... Are there any indicators supporting our trade direction?
We have the MA's on our side and the hourly MACD is moved fron positive to negative so we can tick that box in out trade log...
... and the stochastic indicator is clearly rising on the daily so we can tick that box too: -
The next question asks o there is any divergence supporting the direction of our trade. We can see that on the 4 hour chart, the MACD and Stochastic both have bullish divergence: -
Charting Techniques Question: -