Daily chart analysis helps determine if there's more buying or selling pressure, aiding in avoiding purchases near resistance or sales near support. Review the past few months on a daily timeframe and ask:
- Is the market trending? In which direction?
- Is the market consolidating? What's the range?
- Where are the next resistance and support levels?
- Are there any chart patterns?
- Is the price near a weekly pivot or round number?
Plot key support and resistance levels as you go through your checklist.
Are you trading for fun or profit? Trading can be addictive, pushing you to always be in the market, which is risky.
If you’re trading too often, consider it a sign of addiction. Switch to daily charts and limit trades to a few per week.