TIMESTAMPS
00:42 – UTILITY
A complete trading strategy is based on market understanding, structural guidelines, but also the awareness of personal preferences and circumstances.
Each trader has a unique trading style, timeframe and desired outcome.
★ The one thing we all have in common is the desire for consistent profitability.
Developing a consistent approach to formulating a daily trading plan is a crucial step towards building a successful trading career.
A daily trading plan can be viewed as a roadmap for the day ahead, where we take different potential scenarios into consideration and prepare ourselves to adapt and react to changing market conditions quickly.
This approach helps us to capitalize on given opportunities and provides a clear framework for the day’s activities.
In addition, maintaining a daily plan can help traders to overcome emotional biases and to approach the market from a more objective and rational perspective.
A trading plan must have the ability to adapt to different market conditions and include different scenarios.
02:08 – IMPLEMENTATION
02:22 Discussed here is the daily trading routine, incorporating TradingView and Exocharts analysis to refine our trading strategy.
Step 1: Daily High/Low Indicator
Useful to determine market structure and derive information about risk management, setting trade expectations, and determining targets for potential trades.
Market structure provides traders with a clear picture of the current state of the market and helps to assess the R:R profile of potential trades, so you can set realistic expectations for their outcomes.
Step 2: dOpen Relationship to Previous Day Range
Useful to determine ‘inside’ or ‘outside’ days and to derive information about market direction and whether price may trend or range.
Step 3: dOpen Relationship to the Previous Day Value Area
Useful to determine if price is ‘balanced’ or ‘imbalanced’ and to derive information about the market direction, targets for potential trades and the probability of a significant move during the session.
★ An Open inside pdVA indicates balance and decreases the probability of a significant move.
★ An Open outside pdVA indicates imbalance and increases the probability of a significant move.
A market that opens out of balance has a high potential for a dynamic move in either direction, while a market that opens and is accepted within pdVA tends to show less potential for a dynamic move.
Three different types of opens:
1) Open WITHIN previous day value area:
If the market breaks out of balance during the first half hour of trading, it could indicate the potential for a trend to develop.
If the market regains balance and is accepted, a full retrace is likely.
07:45 Illustration of the open WITHIN pd value area scenarios.
2) Open OUTSIDE previous day value area:
A market that opens outside of value but within range indicates a market slightly out of balance.
If the market breaks out beyond the extremes of the previous day ranger, the market is coming out of balance, and trending potential increases.
If the market finds acceptance back into the pdVA, the potential for a full retrace to the other previous day extreme is increased (hence the CCV).
10:12 Illustration of the open OUTSIDE of pd value area scenarios.
3) Open OUTSIDE previous day range:
A market that opens outside the pd range and is accepted is out of balance.
If the market continues in the direction of the breakout a trending day is usually the result.
If the market is rejected back into the pd range after breaking out, it could trigger a potential dynamic move in the opposite direction of the breakout.
12:20 Illustration of the open OUTSIDE of pd range scenarios.
Step 4: TradingView Routine
-HTF Levels
-pMonth
-pWeek
-pDay
-Session Volume Profile
-pdVA
-SFP Levels
-CC Support/Resistance
-Single Prints
-Old Opens
-Fixed Range Tool
Once you have your levels marked it will become clear where there is confluence. This allows you to hide the less relevant levels, keeping only the levels you are interested in trading for the day ahead.
17:50 – IMPLEMENTATION CON’T
Once this thorough analysis has been done, you can transition to view order flow to formulate a final plan.
The focus here is on utilizing the Volume Profile Template in Exocharts to identify the most favourable local levels for the trading day ahead.
★ We are particularly interested in untested values that coincide with local highs/lows (for a liquidity grab).
Step 5: Developing a Final Daily Plan Utilizing Order Flow
18:25 Three scenarios are presented demonstrating how one would use the Volume Profile Template to identify several trading setups.
Step 6: Updating Your Plan with Changing Market Conditions
21:06 The three trading setups are reviewed where we can see how price action developed and how we can adjust our trading plan based on new market information.
While you wait for your predetermined targets to be hit, you can be actively trading the most recent price action. Specifically, you can focus on the previous day’s value area and range, turning to the Daily Volume Profile once sufficient value has been established.
★ Whenever the Balance of either the current day or previous day is breached, you can shift your focus towards identifying and targeting untested value areas from past market activity.
23:26 – TIPS & TRICKS
★ Developing an intuitive sense for identifying well respected levels requires both time and effort in gaining experience and refining one’s approach.
★ It is recommended to dedicate some time to back testing and analyzing historical price action in order to identify recurring patterns that can be observed during daily reversals in the past.
★ It is recommended to set up your own Discord server to gather your Daily Plans. Here you can also conduct end-of-day reviews of price action and your trades. Indeed, this will help you identify areas for improvement.
★ This approach can help one to develop a better understanding of the market, recognize its recurring patterns, and ultimately enhance your overall trading performance.
★ To be prepared for unexpected market developments, it is recommended to wait for the predefined levels of interest to be hit, assess the individual reactions, and then potentially enter a trade.
★ It is crucial to maintain flexibility in a Daily Trading Plan and avoid becoming overly attached to a predefined idea or bias.