Your First Trade Setup

You've learned the building blocks. Now let's assemble them into a real, executable trade plan.

The 5-Step Framework

Step 1: Determine the Trend (HTF Bias)

Open the Daily or 4H chart. Ask: Is price making HHs and HLs (bullish) or LHs and LLs (bearish)?

Rule: Only take trades in the direction of the HTF trend until you're consistently profitable.

Step 2: Mark Key Levels

Identify:

• Support & resistance zones
• Supply & demand areas
• Previous swing highs/lows

These are where price is likely to react.

Step 3: Wait for Price to Reach Your Zone

Don't chase. Let the market come to you. Patience separates profitable traders from gamblers.

Step 4: Find a Trigger on the LTF

Drop to a 15m or 5m chart and look for:

• A bullish/bearish engulfing candle
• A break of structure (BOS) in your direction
• A sweep of liquidity followed by reversal

This is your entry signal.

Step 5: Define Your Trade

Before clicking the button, write down:

| Parameter | Value | |-----------|-------| | Entry | Your exact entry price | | Stop Loss | Below/above structure (where you're wrong) | | Target | Next key level or 2-3R minimum | | Position Size | Based on your risk % per trade |

Example Trade

Bias: Daily uptrend (HH/HL structure)
Zone: 4H demand zone at $41,800
Entry: 5m bullish engulfing at $41,850
Stop Loss: $41,500 (below demand zone)
Target: $42,900 (next 4H supply)
Risk: 1% of account
R:R = 3:1

After the Trade

Win or lose, open your Trade Journal and log:

• Entry/exit with reasoning
• What you did well
• What you'd do differently
• Emotional state during the trade

Key Takeaway

A good trade isn't measured by P&L — it's measured by process. Follow the plan, journal every trade, and the results will follow.