Weekly HomeworkBy on 2011 Apr 5 Tue 2:16:02
Not sure if you guys do this, but I learned from my mentors early in my trading career that weekly review of the charts is an important routine for discretionary traders.
First, it is not a review of the charts that we use for our daytrading microscopic timeframe. Instead, choose a timeframe that you do not usually use intraday. Something that will enable you to see the overall theme or structure of the market you trade.
For example, I always review all the markets that I will potentially trade during the weekend using 4 hours, daily, etc. timeframes. so that I can note down the price levels and formations that are important to look for in the upcoming week. The weekly commentary I made is actually my trading notes for the upcoming week. Surprised?
The reason why we need to read a chart that you are not going to use during the week anyway was very well answered when I popped the question many years ago, “You are not reviewing the charts for clues to make a trade, you are reviewing the charts for the conditions to not make a trade (and call it quit from a trade).”
This answer served me well for many years. I hope it will be for you too.