Whatever setup detection technique you have specified in your trading plan will decide this region.
A crossover of two moving averages or the price encountering resistance at a Fibonacci retracement level are two examples.
Between the price at the moment and your entry trigger is your potential trading range.
We advise you to snap a screenshot of the area on your chart. Make it a point to regularly take screenshots of your charts.
The ability to observe what transpired visually will help you train your eyes to spot potential chances or traps to avoid on your charts in real-time when it comes time to examine your trades later.
You’ll be reminded of why you got into the business or you’ll become aware of some things you could have missed otherwise.
The potential trade region is where you think you will have an advantage, can trade successfully, and where the reward/risk balance is in your favor.
You must choose how you want to fulfill this criterion for yourself.
You were “ready” to trade the moment you sat down in front of your screen in your chair. You “aim” at the probable trading region.
This will prevent you from firing from the hip and entering a deal without a plan