Because I haven’t checked it, that’s why it turns out like this
There are far too many people who do not know what to check before entering
If you entered because it “felt like a good idea,” that is not analysis.
Many people who keep losing in trades do not know what to check before entering. Or they know but do not act on it.
“Look at the chart and enter where it looks good” — this is not analysis. It’s a feeling. If you enter by feel, you will also exit by feel. You’ll take profits by feel. As a result, you’ll have a series of non-reproducible trades and will be unable to explain why you won or why you lost.
There is a clear order of things to check before entering. Merely following this order will fundamentally change the quality of your entries. This time, we will explainthe “Three Checks Before Entry”.
Check ①: Trend direction on higher timeframes
The first thing to confirm before entering isthe trend direction on the higher timeframes
Open the daily chart and the 4-hour chart and check for higher highs and higher lows, or lower highs and lower lows. Is it an uptrend, a downtrend, or a range? Without this fundamental premise decided, you cannot even determine the direction of entry.
If the higher timeframes are in an uptrend, your outlook for today is bullish. If they are in a downtrend, your outlook for today is bearish. With this, the direction to search for entries is narrowed to one. Signals in the opposite direction can be ignored.
Check ②: The current market phase
Once the trend direction is determined, the next thing to check is“What phase is the market currently in?”.
Even within an uptrend, whether the market is in a phase where the trend is expanding rapidly or in a phase where a pullback is forming greatly changes entry decisions. Chasing a new entry in a market where the trend is accelerating can lead to buying at highs. If a pullback is forming, you should wait for a reversal and enter then.
By grasping the phase, you decide whether to wait or to look for an entry. Traders who fail to do this tend to enter regardless of the phase, resulting in a high number of entries with unstable win rates.
So, after the phase is confirmed, what should you do? The method for confirming specific entry conditions and how to determine the stop loss location will be explained in the latter part.
The method to confirm Entry Condition ③, and how to determine the stop loss location,
and the full checklist for pre-entry checks are all explained.