Forex Analysis checklist.
1. Monthly main range (no more than 1000 PIPS). Measuring the range with the arrow tool.
– Add horizontal lines on the arrows.
– Add the thin rectangular strip on all key levels.
– Add labels: “Monthly Key Support”
2. Step up to the weekly time frame.
-Use the Fibonacci tool: Click from the resistance (above) to support (bottom).
– Draw a horizontal line at the 50% (0.5) level. (Remove the Fib afterwards)
– Do all three monthly series, leaving the weekly main levels as they are (no horizontal strip)
-Label the weekly mid-range levels. For example: “Weekly mid-range Resistance 0,96 **”
– Check the MA position (crossed up, cruised down / Bullish, bearish) and label.
3. Now step to the daily time frame. To draw keylevels with only the rectangular strip. Remember to use the 4-hour chart in line with the daily chart to do this.- Use a thin horizontal strip for the Daily / 4 hour key levels.
– When it helps you, change the color.
– If no key level can be seen, do not force it, stay at the week and monthly till the price action shows a key level.
– Check the MA position (crossed up, cruised down / Bullish, bearish) label (weekly and daily) .
4. Mark the higher highs / lows higher (if in uptrend) or lower highs / lows lower (if in down trend) on the daily / 4uurs time frame.
– Always think ahead when a new higher high / lower low can be expected.
5. Apply trend lines on the chart for assistance and to obtain a clearer picture which way the trend of the market will go.
– Daily and weekly lines broadly assist in the general direction.Be aware of the 3rd trend line touch / bounce + trend line break rules (weekly and daily) 4 hourly + 2 hourly chart is for the application of the counter-trend lines.Add it if possible, once you have an idea of the general trend direction (Bullish or Bearish). Trading breakouts in the direction of the trend (MA crossover and breakout should work together).
6. Draw the Fibonacci on the chart.
– Weekly + daily Fibonacci act as a guide for what direction the trend is going.Do not worry if you missed the C- Retracement; Use the D-extension targets as a potential directional bias.
– 4 hourly + 2 hourly Fibonacci is very good for entry positions. Additional confidence is given as D-extension levels overlap any key level monthly / weekly as an extra confluence.
– Trade thee Fibonacci with inside bars / counter trend line breaks + MA crossovers. Remember that 78,6% fib functions as a Stop-loss level (Not at the daily / weekly).
– Improvise a closed line, up or below the 78,6% that can make the A, B, C, D move invalid.
7: An important entry strategy is the inside candle setup.
IMPORTANT: double check your currency pairs, read the candlesticks and make use of all of the rules mentioned above to get the overall market direction / bias.
– Look for inside candles to help with an entry point if there is already a trend direction.Maybe they break the two setups in your currency pairs.
– Daily / 4 Hourly inside bars provide the most reliability.- According to the rules you should highlight the inside candle, step to the next period, waiting for MA crossover then you enter your trade on the final candle.
– Don’t forget to place your Stop-loss at the daily and 4H chart at the HH-LL-HL-LH marks.
– Not over two trades at once.
– Keep track of your daily trade notebook and be honest with yourself.
– Think in terms of percentages and PIPs.
– Always save your work and stay organised.
Forex Analysis Checklist.