Planning trades in advance is a very important part of a trader’s success but most importantly is following the plan and trade the plan. In this post, I go through some of the opportunities I’m looking at, looking at weekly charts.
Before I get started on the week’s game plan. I would like to share with you the tweaks to my trading strategy. All my ideas and charts will be based on it.
At the core, I’m a trend following trader. I want to be in the same direction as the longer-term trend (one order of magnitude higher than the chart I’m trading) which in my case would be the weekly chart since I trade the daily chart.
I use a pair of exponential moving averages to define a trend on the weekly chart. The 60 amd the 30 EMAs.
- 30w EMA > 60w EMA the trend is up (Redline)
- 30w EMA < 60w EMA the trend is down (Blue line)
I will be looking to be trading in the direction of the weekly trend. On the daily chart. In addition to the weekly direction, with every trade, I want the 200d EMA (the orange line) to behind me at all times.
That’s the wind at the back that I always refer to.
Without any further a due let’s get into the plan.