Pre trading checklist

I found a lot of forex traders only write a currency trading plan and keep a currency trading diary. They never made a pre trading checklist! 


In fact, a pre trading checklist can find the forex trading opportunities and avoid forex trading mistakes. Today I will guide you toward a better mastery of it

If you are a forex trader, you should write a forex trading checklist. It may include:

• Currency pair
• Date
• Opening price
• Support levels on the daily chart
• Resistance levels on the daily chart
• Are ADX readings above 25?
• Has it crossed 20 exponential moving averages, 50 EMA, 100 EMA and 200 EMA?
• Are ADX readings below 20?
• Are Relative Strength Index readings below 30?
• Are Relative Strength Index readings above 70?

I think the aim of a pre trading checklist is to determine the main trend on the daily chart. Therefore, I use the moving averages indicator and average directional index.

If you are interested in further details, I strongly recommend Kathy Lien's currency pair checklist.

A Pre trading checklist is presented below. I will update it every day.

• December 17, 2017
• AUDUSD
• 0.76405
• support levels: 0.7627, 0.7597, 0.7549
• resistance lines: 0.7693, 0.7741
• ADX readings are 27
• It has crossed above 20 EMA, but it is still hovering below 50, 100 and 200 EMA
• Relative Strength Index readings are 53.76
• I will buy 1 micro lot of AUD/USD at 0.7637

Here is my pre trading checklist, you can modify it according to your trading style.

In the next couple of articles, I will you the day trading checklist and the stock trading checklist.

More reading: Ripple....rips higher. Do the technical tools help define risk?