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.
Related Posts:
- Adapting to Market Conditions 16:52 15 December 2008
- Vital Information You need Before You Start 17:30 04 February 2009
- Adapting to Market Conditions: Master Candles 16:54 15 December 2008
- Who is Taking Your Trades? 14:54 22 January 2009
- This Weeks Analysis 06:35 27 October 2008
Archived Comments (23)
Forex Blog: Art of the Chart
that's right. I 'blindly' went short EUR/USD on thursday, the position is still open till now I hope I loose in that trade for the following reasons:
1. Its a demo
2. It'll teach me to make more analysis before entering the market
3. I have never lost a trade since 6th Jan 09, when I started demo trading with FXCM and I was beginning to think they don't allow traders loose on a demo. Loosing will clear my doubts a bit
.....nu_bee
Thanks for your effort to help new traders
Thanks for the always-good advice Nick
You are real value
Thanks for the always-good advice Nick
You are real value
The Great Nick B has spoken again. I have used Sunday as my day or 'rest' and 'preparation' for the upcoming week for a few years now. What an awesome reminder these thoughts are for traders of all kinds.
Awesome week last week wasn't it Nick....Kia Ora E-hoa...
Excellent article.. I have been trading active for six months now. I AM A NEWBIE!! Nick's articles have been so helpful I went in to his website to learn everything I can about candle patterns. Thank you again Nick..
Excellent advice Nick. Ive gotten caught in quick directional changes because I didn't do the preparation (esp. at 10am) but now I read the calender and check charts for the week past at least. Thanks for a clear to-do list.
Excellent advice Nick. Ive gotten caught in quick directional changes because I didn't do the preparation (esp. at 10am) but now I read the calender and check charts for the week past at least. Thanks for a clear to-do list.
#3 is very important. I lost 30-40 pips when my indicators were indicating an uptrend, but the hourly chart was in a downtrend.
#3 is very important. I lost 30-40 pips when my indicators were indicating an uptrend, but the hourly chart was in a downtrend.
I have one additional thing that I do each week. As an individual who resides outside of the countries whose currencies are traded in the FOREX market, I always check to see if there are any (bank) holidays for the trading week. This gives me an idea of what to expect in terms of volume and price action for those sessions. The major ones are US, UK and Japan.
I've been practising for quite some time,the problem with me is that i'm not a constintent trade winner but since i stumbbled into nick's website everything is now different,i'm now learning how to trade without indicators but i always forget to checkout some of fundamentals untill now.
Thanks Nick B. From Frankie
I've been practising for quite some time,the problem with me is that i'm not a constintent trade winner but since i stumbbled into nick's website everything is now different,i'm now learning how to trade without indicators but i always forget to checkout some of fundamentals untill now.
Thanks Nick B. From Frankie
I've been practising for quite some time,the problem with me is that i'm not a constintent trade winner but since i stumbbled into nick's website everything is now different,i'm now learning how to trade without indicators but i always forget to checkout some of fundamentals untill now.
Thanks Nick B. From Frankie
I've been practising for quite some time,the problem with me is that i'm not a constintent trade winner but since i stumbbled into nick's website everything is now different,i'm now learning how to trade without indicators but i always forget to checkout some of fundamentals untill now.
Thanks Nick B. From Frankie
I have tried the master candle method a few times and it has worked well. Thanks for your good advise and ideas. Keep up the good work! Carlos!
I have tried the master candle procedure a few times and it has worked well. Thanks for your good advise and ideas. Keep up the good work! Carlos!
hi
how do i get this analysis
@ Nu bee....you have never lost a trade since January 13th???u must be having a very good strategy then
P . E . R . F . E . C. T . ! . ! . !
Hi, am really new. I can't download your PDF manual. Kindly send it to me on my email address. Thanks.
Great to do list Nick. Thanks. I'd wondered in the past if it would be a good idea to do something on a Sunday, but now you've confirmed it. I've set a reminder in my phone so I won't forget from now on! lol
Just a quick question regards targets and scalps. How do you determine the difference? Does it depend on the pair and the timeframe your trading? i.e. Would you set targets in longer timeframes and scalps in the intraday chart?
I look forward to your answer.
Oh, and thanks for the manual too. I'm just off to read it now!
hi
Hat’s off. Well done, as we know that “Hard work always pays off”, after a long struggle with sincere efforts it’s done.
Eliza
Baby Gear