The Trade Planning Process
Trade planning is a four part process.
Where is the price going?
2. Trigger condition
What has to happen to confirm the price is going there?
3. Invalidation & risk
When the trigger condition has been met, what would invalidate the trigger condition (meaning that it is no longer met)?
How far does price reverse to confirm invalidation (this is risk)?
4. Target & reward
If the price were to continue from trigger to forecast is there sufficient r:r to justify the trade?