Setting Up To Trade

Setting up to trade is a simple process. Once you’ve found a broker, you need to get to charts. My guide on tools I use in my trading will help you to decide which charting to use. For forex, MetaTrader 4 is fine and also free!

 

A forex chart of USDCHF, showing daily and weekly support and resistance

Setting up to trade

We can see from the image that I am using candlestick charts, this is my preference over bar charts or lines charts. This doesn’t matter and is totally personal preference. You may notice that it is completely free of indicators.

I like to have my charts relatively plain and clear, so that I can see the price action clearly. Then I mark out the higher timeframe support and resistance levels – for me that is weekly and daily. I tend not to put levels on for my trading timeframe (H1), as it will clutter the chart too much. When I see an area I like on the H1 chart, I mark it with a single green line. These are areas that become apparent as the hourly chart unfolds.

I colour code my higher timeframe levels, so that I can see at a glance the importance of them. I like to use red lines for my weekly support and resistance and orange for daily levels.

If I see an hourly level I like, I mark it out. I then check for confluence. This is the basis to my trade entry and setting up to trade. By keeping my chart clean and minimising distraction, I can set up to trade effectively.

Next Article: Developing Your Trading Strategy.