Imagine a point on the chart, every trade starts a single point. This doesn’t mean we just point and shoot. Like a Marine sniper, we have to take in all the factors that could affect our shot. We also have to ensure we know, without a shadow of a doubt, who or where our target is.
With our point selected, the process is to collect evidence for and against taking the shot. The criteria will vary depending on the edge but in general we start to run through a checklist.
Support and Resistance
We start to ask ourselves where is the price coming from on multiple time-frames. We look for support and resistance that could help or hurt us. We look for patterns in the price action. We watch the tape, every little tick, until it’s time to pull the trigger.