It starts with a FRAMEWORK. We try to identify a count and a target ZONE to deploy risk capital. Here we see a count that has AUD close to a SELL LEVEL.

We need to drill down and look at different time-frames to either validate, or invalidate the thesis.

The Hourly chart highlights the RESISTANCE zone we were looking for. We now can calculate the risk we want to take, vs the reward we seek.

This process is not infallible, we can live with being wrong. What it does is it allows us to formulate a plan and deploy risk capital with a purpose. Knowing where you are wrong is half the battle. We are continuously looking for improvements, ways to get sharper. Our process has a base, but will continue to evolve.

The Biscuit.