Here are five things to check before entering any trades. These should be based on your own time frame and trading system.

1️⃣ Path Of Least Resistance

  • The first question: Is the chart in an uptrend, downtrend, range, or highly volatile?

  • Uptrend → Higher highs/lows = Long entries (buy dips or momentum).

  • Downtrend → Lower highs/lows = Short entries (short rallies or weakness).

  • Range → Sell resistance, buy support.

  • Volatile → Wide swings, little respect for levels — moves both ways quickly.

2️⃣ Price Area Of Value Or Interest

  • Identify the nearest price zone with strong buyer/seller interest:

  • Uptrend → Buy dips near the 50-day MA.

  • Downtrend → Sell rallies to the 50-day MA.

  • Range → Key support for buys.

  • Volatile → RSI 30 for buys, RSI 70 for sells (often in 1-day swings).

3️⃣ Entry Signal

  • A clear, backtested reason for going long/short — price action, indicator, or technical setup. Must offer a good risk/reward.

4️⃣ Exit Strategy For Losing Trades

  • Decide your stop loss before entering. Place it at a level that should not be hit if your trade idea is correct. Keeps losses small and risk/reward favorable.

5️⃣ Exit Strategy For Winning Trades

  • Have a profit target based on technicals or patterns. Take profits when your best-case scenario plays out and further upside potential isn’t worth the risk.

💡 The best traders don’t guess — they prepare.

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