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The trading plan in plain words — three questions

A plan is not a prediction. It is the answer to three questions: where the market looks, where we enter from, and where we go. We work through a closed case: gold, daily chart, the plan made on the nineteenth of November 2024.

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The plan comes together in a minute and a half

A plan is not a prediction but the answer to three questions: where the market looks, where we enter from, and where we go. Worked through on a closed case: gold, daily chart, the plan made on November 19 and the target closed on January 29.

Lesson preview: the trading plan in plain words
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BREAKDOWN

Three questions and their answers

The first question — where the market looks. Three scales: the day, the week, the month. All three point up, and that is not an opinion: on each of them the last high stands above the previous one.

The second question — where we are. The markup gave a higher low on the third of May and a higher high on the thirty-first of October. Between them the market moves — that is the trading range.

The range splits in half. Premium above, discount below. In a long you wait for the lower half: buying in premium means buying expensive. Discount does not always come — a correction sometimes gives back a third of the way. This one came exactly to the middle, and there is the answer to the second question.

The third question — from where and to where. Point A is where the correction ends; below it the idea does not work. Point B is the target, that same higher high. The plan is ready in a minute and a half.

Why point A sits exactly here

Liquidity is looked for under the swings of the impulse — the move up that made the high. There are many swings there, and not every one works: the one that matters lies deeper than the rest and inside an object from the higher scale.

It was taken on the fourteenth of November, and how it was taken matters: the level was taken by ten points, and the close came back eighteen above it. A long wick below, a short body. That is a reaction, not a pass straight through.

Where it happened matters too. A monthly imbalance sits there, left by the move back in August, and nobody has come back to it since. The last swing of the impulse turned out to be inside it: the liquidity and the end of the correction met in one place.

The stop is seen in the candles, not guessed

Before the zone there are two falling candles with long bodies. Inside the zone the body is three times shorter. The seller ran out of breath — that is read off the size of the candles, not derived from a wish.

Confirmation, and what it costs

The confirmation is what is left. The break on fifteen minutes had already happened: on the nineteenth of November price went through the nearest high above and closed above it.

The break on the hourly scale had not happened yet at that moment. That is where the choice sits: the higher the scale of the confirmation, the higher the chance the idea plays out — but the entry comes out higher and the way to the target is shorter. The chart draws the markup; the trader chooses.

How it ended

The move went up and on the twenty-ninth of January closed above the target. It did not get there at once, but point A was never touched on the way — which means the plan never stopped working at any moment.

The chart draws all of it. The trader's work is to read, not to invent.

IN THE METHODOLOGY

How this fits the FocusProfit model

The three questions of the plan are an order of reading, not a set of tricks. The FocusProfit Trade Model indicator labels confirmed extremes, builds the range out of them and carries a break that has occurred onto the working scale — the rest is read by a person.

The middle of the range and both halves are our markup on top of what was labelled. The topic is covered in more depth in the Learn section, and the causality in full is in the methodology.

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