out. It changes within a session and may do so rapidly. List the things that you did right, what you did wrong, what you expected and didnt expect, and what you couldve done better. This is where the importance of having a detailed trade journal comes.
Session 2 did not turn out to be a strongly bullish session. The first step to overcoming these biases is to become fully aware of them.
A step-by-step guide to determining the market bias: Draw the most recent trend line channel based on the last session. In the above example, the market proceeded to shoot up sharply after plunging. A look at the daily chart reveals a selling opportunity in the form of a wedge breakout. By signals, Im referring to pin bars. Always keep the big picture in sight, and dont allow your last success or failure cloud your judgment. Now we not only have the confidence of this bearish pin bar at new resistance, but we also know that this market is in the downward leg of a broader descending channel. Lets go on to the examples. This is all you need to set critical support and resistance levels for the next trading session. Each example shows two trading sessions. The anchor of this recent bull trend line was found two trading sessions ago in Session.
Just make sure you do your homework, conduct proper fundamental and technical analysis, and plan your trades well. Example #2 Session 2 and Session. Here we have a bullish pin bar that formed on the usdjpy daily chart after the market was able to hold a key level. Using the price action in Session 1, you could draw a bearish price channel.