- Trade entry
- Position size
All the above certainly matter for a trader when embarking on trade setup planning, preparation, and execution. Today I wanted to highlight the “Timeframe” and “Goal” portions and expand on my earlier post on Perspective.
Recently I had on a long trade in FST (Forest Oil). Here is the Daily chart I posted before starting a position:
As you can see I note the Gap Fill opportunity – this being the Goal of the trade setup – and the timeframe being – well, you know, the time needed to complete the Gap Fill. Now let’s add some perspective on things. Here is a recent Monthly chart to digest:
Always good to make sure that you understand what has happened to the left on the chart so that you know all the relevant perspectives.