The Importance Of Context

When you plan and take your next trade, please ask yourself this question:

‘Do I know the Context of this trade?’

Knowing the Context of a trade is an important part of planning any trade.  Knowing the Context means:

  • Is this a Counter-Trend or Trend Trade and on which Time Frame?
  • Is it a short term or longer term trade?
  • How many reasons are there to take the trade?
  • Is this a Lower Time Frame entry into a Higher Time Frame Setup?
    • If so has the Higher Time Frame setup triggered yet?

Knowing the Context for your trade can give you a Bias and therefore an edge, but how do you do this in practice?

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