Trading Checklist for Pattern Traders

Author: XABCD Team on February 24, 2024
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Daily Checklist for Pattern Traders

This is a checklist for XABCD Pattern Traders that they can use when they wake up and get started for the day. If you're new and want to learn more about the xabcd pattern strategy we have some videos you can watch on the topic. Of course, let's break down the tasks into micro details before a trade is executed:

Market Analysis Checklist

  • Check pre-market for economic news and overnight developments of new patterns. Specifically, set your "maxbarcount" in your xabcd pattern scanner to 15 so you can see some slightly older patterns that might still be valid - or to have a second attempt.
  • Make sure you load up the XABCD News Pro indicator to review economic calendars for scheduled releases.
  •   Look for any xabcd patterns and support and resistance levels.
  •   Assess market sentiment through tools like sentiment indices or market breadth indicators.
  •   Consider correlations with related markets or assets.
simple approach to every chart
We actually didn't publish this checklist for pattern traders video on our youtube channel, but if you have an interest in watching it then ask us on our live chat and we'll send you the unlisted link.

Review Open Positions Checklist

  • Evaluate the performance of existing positions from the previous day. You might want to attach some ATMs to your positions. If you need some atm templates feel free to use ours and customize them as needed.
  • Assess whether any targets were hit and if any positions need to be closed.
  • Check for any news or events that may affect open positions.
  • Calculate unrealized profits/losses and determine if adjustments are needed to manage risk.

Identify Trading Opportunities Checklist

  • Scan for potential setups using a maxbarcount set to 3 for the most current xabcd patterns.
  • Look for patterns that indicate a high probability trade which might line up with support or resistance.
  • Consider factors such as trend direction, volatility, and volume or anything else you might look at that could effect how you weight your trades.
  • Verify the alignment of multiple technical patterns or timeframes for confirmation.
  • Review risk-reward ratios to ensure favorable trade conditions.

Execute Trades Checklist

  • Determine the specific entry price, stop-loss level, and take-profit target for the trade.
  • Calculate position size based on risk management rules and account size.
  • Choose the appropriate order type (market, limit, stop) depending on market conditions.
  • Double-check order details, including quantity and order type, before submitting.
  • Monitor the order book for execution and confirm the trade is filled accurately.
  • Review our XABCD Pattern checklist videos for more detailed checklist items.
By meticulously following these steps before executing a trade, traders can enhance their decision-making process and minimize risks.

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XABCD News (Free Version)
XABCD News Free
XABCD News (Community Edition) is the best free Indicator for NinjaTrader 8. Don't let news sneak up on you again. Puts economic news events on your charts so you can stay informed and move around positions/stops before the news is released. Works in any market.
XABCD Priceline (Free)
XABCD Price Line tool for NinjaTrader 8 will draw a line at current price and move every time the market changes price. This is useful because it will allow you to easily identify where price is at all times and the exact quoted price.