Step 1: Identify the market direction
Check whether the market is moving upward, downward, or sideways.
Step 2: Mark important price areas
Identify support, resistance, trendlines, and other important chart levels.
Step 3: Look for confirmation
Study candlestick patterns, price action, volume, or indicators to confirm a possible setup.
Step 4: Create a trade plan
Before entering a trade, define your entry point, stop-loss, target, and maximum acceptable risk.
Step 5: Review your decision
After the trade, record the result and review what worked and what could be improved.