Area of Potential Trade

For each trade you make, you must have a good reason. This is also referred to as logic or reasoning.

Why are you looking for a way into this area？ What are your plans for pulling the trigger？

The setup detection algorithm you have established in your Trading Plan determines this region.

A crossover of two moving averages or price hitting resistance on a Fibonacci retracement level are two examples.

Between the current price and your entry trigger is your possible trading area.

We strongly advise you to take a screenshot of this section of your chart. Take snapshots of your charts as often as possible.

When it comes time to examine your trades later, being able to see what transpired visually can assist train your eyes to spot potential chances or traps to avoid in real-time on your charts.

This will either remind you of why you got into the trade in the first place, or it will make you recognize certain things you may have neglected.

The potential trade region is where you believe you will have an advantage and will be able to trade with a high likelihood of success and a favorable reward/risk ratio.

You must decide how you will achieve this criteria on your own.

You were “ready” to trade the moment you sat down in front of your computer. Where you “aim” is the prospective trading area.

This will prevent you from entering a transaction without a strategy and trading on the spur of the moment.