Homework.

The main task that is solved when doing homework is the selection of assets for trading, followed by writing a trading scenario for each selected instrument. At the same time, you pay attention to such important conditions as:

1. The presence of a trend: the largest movements occur in a trend;

2. Power reserve - ATR value: technical - from level to level - or calculated;

3. The presence of price levels and the movement of the current price relative to these levels: the speed of approach of the price to the level, formation — whether there is a preload or quickly approached by large bars, etc .;

4. Characteristic of the price behavior of the asset: you should not choose very volatile securities for trading, which are more likely to kick out stops; use caution when choosing assets that have recently risen or fallen; you must pay attention to instruments that look stronger or weaker than the market, that is, living their own lives. As a result of the initial selection, we form three lists:

1. Priority - it includes assets for which the level on the day is clearly visible and the price is at this level or at this level, there is a sufficient power reserve to the next level.

2. Optional - the levels are clearly visible, but the price is between the levels, there is a sufficient power reserve to the next level.

3. Everything else - incomprehensible levels on the day; many levels and everything is close enough to each other or, conversely, the lack of nearby levels; just incomprehensible asset price behavior.

Then additional filtering of the selected instruments is performed. In order for the instrument to fall into the tradable list, the following conditions must be met:

1. The price approached a significant level and / or tested it.

2. The tool walks in the channel.

3. Volumes at closing are above average.

4. There is a clear trend.

5. Continuous smooth schedule.

In this case, the ideal conditions for the transaction are monitored by the following parameters:

1. The coincidence of global and local trends.

2. The presence of a strong level.

3. The presence of power reserve (potential).

4. The ability to set a short stop loss.

5. Providing a ratio of profit to risk of at least 3: 1.

6. The market background corresponding to the direction of the transaction.

Information on the compliance of each of the selected tools with the listed parameters is entered in a special table that includes: a) a sheet for short, b) a sheet for long, c) a sheet for waiting (assets for which there is uncertainty).

The table shows the name of the instrument, closing price of the previous session, nearby levels, ATR of the instrument. Depending on the result of the analysis, the tool is entered in the corresponding sheet. For each selected instrument, a trading scenario is compiled, which includes: a schedule and a detailed description of the actions with an explanation of why such a decision was made on the instrument. In addition, the prices of the estimated entry point, stop loss and take profit are entered into the script.

Each transaction begins with answers to the questions on the checklist. Each transaction starts, continues and ends with saving pictures of the price chart. At the end of the week, a detailed description of the transaction is made. After the end of the trading week, transaction statistics are summarized and levels are estimated for the upcoming trading week. At the end of the month, a statistical analysis of all transactions is performed and a part of the profit (monthly income of the trader) is necessarily displayed.

Inside the trading day (at least twice a day; usually in the morning and at the end of the working day), the market situation is monitored. According to the results, the list tables are filled in or adjusted.

To facilitate the analysis, as well as to improve its quality, you can use the analytical and trading schemes given in the appendix.