The 5 Ws of a good trade
A simple way to get a solid entry every time
Who, what, when, where, why.
In that order.
Classic journalism. Covers all the bases. Inverted pyramid information shape. Headline down to detail.
Applies to trading too.
Who - market to trade, asset
What - event or catalyst, setup, context
When - time frame and session
Where - exact entry, typically level of interest
Why - arrival of price at level, with price extension to make it easy to take and invalidate the risk and trade
In my case the top three are fixed, more or less. But could be worth noting if asking multiple markets. Treat this like a checklist so you ensure you don't forget anything and consider all key setup points.
Where and when are the hardest discretionary parts. Pick a level based on price action and volume traded at that level. Bounces off that level can be detected by indicator, custom code, volume failing as it hits the level as interest dies, spreads narrow to induce trading and it's off to the races if you get a fill.
If all goes to plan, you'll get a fill, and validate or invalidate quickly. Individual results are less important than process, of course. We need to win as often as possible, preferably in line with the trading backtest win rate.
I have some great indicators to share, to help find the where and the when. I'll put those out for free, including a vwap bands indicator, fvg/imbalance highlighter (multi timeframe), quick chart hotkey tool, and more besides.
For now, grab a volume profile indicator, set to look back to last session, and add a fast rsi (5-10 period) to pick out the dips into good levels.
I'd share a good PA technique for finding bounce areas but I'm still trying to automate that, so all in good time.
Until then, happy trading. Share your simple techniques in the comments.