What are the important points to consider before placing a trade?

There is always something negative in the way of a trade. This is unavoidable. The biggest thing you have to learn as a trader is understanding that the market isn’t perfect and learn how to trade in an imperfect noisy market.

As price action traders we try to put structure on an imperfect market to guide our analysis. If you try to always wait for the “perfect” trade you will often miss a lot of high-quality trades.

What you do when analyzing a trade is to list the high-quality points “in your mind” and ask yourself questions like:

• Is there a key level? What is the quality of the key level?

• Did we just break a trend line? Fresh trend?

• Is there an area of confluence? How many traits are stacked at it?

• Is there a chart pattern in play?

• Is there a trend line in the play?

• Is there a moving average that is in play?

• Is there a Fibonacci level in play?

And the more things you have that are high-quality traits, the higher the trade quality of the trade opportunity and the higher the probability that it will go in your favor with true momentum.