Learn the four-step method to high-performance trading with free audio programs. Focus on instrument selection to identify best trade setups and templates for the week. Understand frontside and backside templates, and trading range opportunities. Don’t get caught up with information overload, and filter through instruments to find easy setups. Recognize different templates and be patient for best trade opportunities.

The Four-Step Method to High Performance Trading
and the Seven-Step Routine for High Performance Traders

Session Trades: Simplifying Instrument Selection
Understanding the Importance of Best Trade Setups
The Significance of Template Bias
Identifying Opportunities in Up, Down, and Trading Range Templates
Recognizing the Frontside and Backside of Market Movements

As a trader, it is important to develop a skill set and mindset that will help you master the markets. That is why G’day Traders offers two free download programs – the Four-Step Method to High Performance Trading and the Seven-Step Routine for High Performance Traders. In this article, we will focus on session trades and how to simplify instrument selection and identify the best trade setups using a simple format.

The Importance of Best Trade Setups

Trading requires discipline, patience, and the ability to identify the best trade setups. While it may be tempting to take every trade that comes your way, successful traders understand the importance of being selective. This is especially true when it comes to session trades, where there may be a plethora of opportunities.

So, what is a best trade setup? It is a trade that offers a high probability of success and scalability. In other words, it is a trade that has a significant potential for profit with minimal risk. As a trader, your goal should be to identify the best trade setups for each session.

Template Bias

To identify the best trade setups, you need to have a template bias. A template bias is the bias or expectation that you have for a particular session based on the price action and market movements of the previous session. For example, if the market is trending up, you may have a bias that the market will continue to trend up in the next session.

To determine your template bias, you need to look at the previous session’s price action and market movements. This will help you identify if the market is in an up template, down template, or a trading range template.

Identifying Opportunities in Up, Down, and Trading Range Templates

Once you have identified your template bias, you can start looking for the best trade setups. In an up template, you should be looking for long trades, while in a down template, you should be looking for short trades. In a trading range template, you can look for long trades near the bottom of the range and short trades near the top.

But how do you know if a trade is a best trade setup? There are several factors to consider, including the opening range, initial balance, and day counts. The opening range is the high and low range of the first few bars of the session. The initial balance is the first hour’s high and low range. Day counts are used to track the number of days that have passed since a significant high or low.

Recognizing the Frontside and Backside of Market Movements

It is also important to recognize the frontside and backside of market movements. The frontside is where the market is trending in your desired direction, while the backside is where the market is moving against your desired direction.

When the market is on the frontside, you should be looking for trend trades, while on the backside, you should be looking for reversal trades. However, sometimes the backside can offer the best trade setups if you are patient and wait for the market to reverse before entering a trade.

Simplifying Instrument Selection

To simplify instrument selection, you should have a basket of instruments that you are comfortable trading. Instead of looking at multiple charts and trying to figure out day counts and other information, focus on the session you are trading and the opportunities that are available.

For example, if you are trading the London session, you should look for opportunities in instruments that are active during that session. You should also filter through these instruments to find the best trade setups for that session.

Final Thoughts

Session trades can be complex, but by simplifying instrument selection and identifying the best trade setups, you can increase your chances of success. Remember to keep a template bias and recognize the frontside and backside of market movements. With practice and patience, you can become a successful trader.

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