Weekly Forex Before You Trade Check List
So many traders out there are trading blind. There are certain vital pieces information every trader should know at the beginning of each trading week. I thought I would put together a quick check list of what you should look at every Sunday before market open and why.
1. Major economic releases and speeches: It should come as no surprise unless this is your first day trading that economic release and speeches move the markets. Each week you should be aware of the day and exact time of all the major economic releases. If you look on the ForexFactory.com calendar the major news events are marked in Red.
You probably won't need to worry about some countries red reports like AUD, NZD, and CAD unless you trade those pairs. Even if you do not trade any USD pairs you should always be careful with the USD reports.
2. Direction of the major trend: This one is easy just open a daily chart for the pair you're trading and take a look at the direction of the major trend. You should also look for signs that the trend is exhausted. Things like reversal candle patterns can hint that the major trend is over.
3. Major support or resistance areas: Again you will want to look at the daily chart for any major areas of support or resistance. This is helpful if you're trading a lower timeframe. You might get a signal to enter a long trade 10 pips before a major area of resistance. If this happens you would obviously reconsider entering that trade since you know it may fine resistance.
4. Analysis for all your pairs: Depending on your trading method you will want to have analysis for all your pairs done on Sunday. You shouldn't rush to do it after the market has opened. For example trading my method I set out all my scalp lines and support resistance lines on Sunday before market open. So when the market opens I already know where I will enter and what I will target.
That about sums it up, it is a short check list so it shouldn't take you much time to do each week. If you want to be a trader you need to be prepared to go into battle every week. If you walk in unprepared the market will cut you down. So this Sunday take an hour before market open to prepare yourself for the coming week.
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