INCORPORATING I.P.D.E INTO YOUR TRADING REGIMMEN

Here is the way i  learnt to look at the market every day and week when carrying out my analysis following the I.P.D.E process:


I didn't come up with this by my self all credits go to Jason Stepleton of Trade Empowered.


The I.P.D.E is simply an acronym for the words : Identify, Predict,Decide,Execute.
 
I= Identify what the market is doing (Is it up trending, down trending or consolidating)
 
P= Predict where the market will go next based on the previous price action, so to do this:
 
1. Define the market Structural framework by drawing horizontal levels around the structural levels of support and resistance. (Do a top-down analysis from the daily to the 1 hr. timeframe.
( Or what ever timeframe you have in your trading plan)

2. Predict the possible ways the market can get to our potential reversal zone. (It could either go straight to our PRZ or it could retrace to a structural level before moving to the PRZ)
PRZ= Potential reversal zone
 
D= Decide what course of action will be taken based on what the market has decided to do (this is where the IF, THEN syntax comes to play)  If the market does this, then I’ll do that. To put it in another way this is the point you two questions “WHERE” and “HOW” I’m I getting involved in this trade. What method or technique will i be employing? Where will my stops go and where will my targets go?
 
E= Execute when all conditions for your trade setup have been met. ( This is where you pull the trigger)