Today I felt like teaching you something super useful for your trading strategy.
All I'm gonna ask in return is that you do the work to implement it in your trading…
Awesome… let me teach you a framework to organize your current trading into a profitable strategy.
This next line is what you need to remember:
Type Of Trade ➡️ Market Phase ➡️ Zone ➡️ Price Action ➡️ Indicator
It's how all good strategies are built.
Any successful trader you ask will have these elements in his strategy.
Here's a short definition of each:
- Type of trade: whether you trade reversals, breakouts, or continuations.
- Market Phase: has to do with identifying if the market is sideways or ranging. Decide if you trade trends or reversals.
- Zone: finding areas on the chart where you can enter trades (i.e. support & resistance, pivot points, Fib levels, etc.)
- Price Action: any price action patterns (candlesticks, chart patterns, etc.)
- Indicator (optional): pretty simple, any indicator that can help you add confluence to the trade (i.e. RSI for reversals, EMA for trend, etc.)
The Indicator part is optional but recommended if you want more confluence.
The goal now is to add at least 1 concept you know in each category.
All the tools you pick should be aligned with the type of trade you're looking for.
For instance: if you trade trends, don't use Engulfing candles. Those by definition are for reversals. Look for other continuation patterns.
You want to aim to have 1 tool per category. You can always combine them, but it's better to start simple.
The cool thing about this exercise is that anyone can do it… even if you've only been trading for a couple of months!
You'll soon find out if you need to learn more stuff or if you already know enough to be profitable.
In any case, you'll be able to create a new strategy pretty quickly.
Let me give you an example of that process:
Reversals ➡️ Sideways market ➡️ Support/Resistance area ➡️ Pin bars ➡️ RSI overbought/sold & back within limits
There you have a reversal strategy created with a couple of tools you probably already know.
The next step obviously is testing your idea and improving your results.
If you want to go in more depth on creating & validating your own profitable strategy in less than 24hrs…
I'm ready to teach you all that right now!
Not only will I go through the entire step-by-step framework, but I'll also show you how to make good strategies for different market conditions.
Click the link below to read all the details:
As always, hit me up if you have any questions!
Keep crushing it 💪 📈
~ Etienne Crete