How To Score A Trading Opportunity With Your Tools

How To Score A Trading Opportunity With Your Tools

Tools for Scoring Trading Opportunity
Tools for Scoring Trading Opportunity

Not every trading opportunity that we see on charts is same. Trading opportunities must be filtered and we must pick only the best ones. To cherry pick trading opportunities which have best expectancy and best profit margins, we must have a Scoring Card in our trading plan. This helps us filter out a lot of risk even before trades have been booked.

I use below tools for scoring a trade. Each trade can have a score between 1-5 depending on their quality but each trade must have at least score of 20. That means at least 3 factors with best quality must be a present in a trade. More the better score.

Depending on score I can change my position sizing too to minimize risk.

Tool
Fibonacci Confluence
Advanced Harmonic Patterns
ABCD Pattern
50 SMA
200 SMA
SMA Crossover
Double Top/Bottom With RSI Divergence
Bollinger Bands Extreme Deviation
RSI Oversold/Overbought
How Far The Price Has Moved From The Zone In Past
How Much Time It Has Spent In The Zone In Past
Is Zone Fresh

 

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