Checklist before trading forex

Novice traders have created a trading plan and kept a Forex trading journal. But it is not enough to create a trading plan if you want to make a lot of money. You have to develop a checklist before trading Forex.

Here is a Forex trading checklist for you

First, I often use the multiple time frame analysis techniques. Therefore, I have to identify the general trend on the weekly chart.

• I will draw a trend line to determine the direction of the trend.
• I will use the 20, 50 & 100 moving averages to identify the trend
• Sometimes I will refer to the Bollinger bands
• Of course, you can trade with the moving average convergence divergence
• Use the Average Direction Index trend strength Indicator
• Identify the Japanese candlestick patterns
• Use the Fibonacci retracement tool
• I will also add a support and resistance line.

Second, I have to detect the dominant trend on the Daily chart.

• Add a trend line
• Draw support and resistance lines
• Sometimes I will refer to the Bollinger bands
• RSI can be used to identify the overbought and oversold levels 
• Trade with the 20, 50 & 100 moving averages
• Use the Fibonacci retracement tool

At last, once I have identified a trending market, I will use the one direction grid trading system on the daily chart. However, if a trend is not present, I will buy near support or sell near resistance.

How to perform a checklist before trading Forex

After demo trading, I think I like trading the AUDUSD pair the most.

First, I have to identify the dominant trend on the weekly chart.

• Identify a reversal with a trend line that has been broken
• Price action tends to stay above the 20, 50, 100 moving average lines, it signals that price is in a uptrend
• The Average direction Index is 25.73
• The Relative Strength Index is 61
• Support level at 0.7742, resistance level at 0.805

AUDUSD in a uptrend weekly chart Forex trading checklist

Second, I have to determine the direction of the trend on the daily chart.

• AUDUSD recently broke above the resistance line at 0.7740
• Price action tends to stay above the 20, 50, 100 moving averages, it shows that it is in a uptrend
• The Average direction index is 23.11
• The Relative Strength Index is 51

AUDUSD in a uptrend Forex trading checklist

At last, I can set a buy market order at 0.79.