2. Look at where the current market price is.
3. Draw only 2 zones. The clearest resistance zone is above the price and the clearest support is below the price. Do not make them too skinny, make them thick regions where you think the price is very likely to bounce. If there are no clear zones - do not force anything, simply don’t draw a zone.
4. After you draw the zones, ask yourself “are these actually very very very clear?” - If the answer is no, delete everything on the chart and skip the pair for the day.
5. Once you’ve finalized the zones, set two alerts, one at each zone, and set the alerts towards the middle of the zone.
6. Plan what each trade would look like, whether it's a buy at support, or sell at resistance.
7. Decide on the entry, and the stop loss (set it just on the other side of the zone, not too close, not too far) and then set the target for a 1:1 RR. Risk 10% of a small account.
8. Once you get an alert that the price has gotten to a zone, enter the pre-planned trade immediately. A buy if the price is at support, or a sell if the price is at resistance - using all the parameters you’ve pre-defined. Feel free to use pending orders.
9. Let the trade hit TP or SL, don’t modify anything when the trade is open.
10. After a trade has concluded, spend 30 seconds logging the data in your spreadsheet.
11. At the end of each week, open up your spreadsheet. Review the before screenshots, and after screenshots, and read the notes you took. Add to your notes at this time if you find out something interesting about your data that you think is useful.
After you have completed your chartwork in the morning and taken care of everything that’s on your rules above, close tradingview and close your spreadsheet. Do not do anything else, because it's a waste of time, irrelevant, and does not add any actual value or data to your trading journey. Once you’re done with the charts, walk away.
Here is the awesome video this set of rules came from! If you find this useful subscribe to this man's channel!
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