I've long been an advocate of the importance of a Market Structure and Price Action Journal. There is no shortage of material on this topic if you want to search the YTC article archives. The best place to start might be with anything tagged "journals", which you'll find here.
So I'm pleased to have received this email question from a YTC reader.
- "Sir, I have started a market structure journal but would be most grateful for some suggestion for topics or categories for journal entries."
No problems at all. 🙂
Some people prefer to make their journals completely free-form. That is, no categories at all. Just finding one item of interest each trading day and studying it in depth. That's great.
Others will prefer to pick a topic or two for intense study. Each day they'll find and study a market structure or price action sequence related to that topic. This will allow for quicker discovery of "rules of thumb" regarding how to identify and manage these particular market structure features or price action sequences. And when you're "done"… move on to a new category.
Just pick whichever approach you want. There is no right or wrong.
Ok… so the email question assumes you've chosen the second approach and want to focus on one particular category of journal entry at a time.
What should you chose?
Again, there is no right or wrong. Just make sure it's something relevant to your own approach to trading.
But let's list some categories to help you get started if you're new to journaling. Or if you already have a journal underway, perhaps the list will help you identify a new area for future exploration.
Support & Resistance Structure
This is the obvious starting point – the S/R Structure. Print examples and study them in detail. What makes a good level? When do they lose relevance? How does price interact with the level?
- Level Definition – Which Levels Remain Valid For Further Touches?
- Level Definition – When Do Levels Lose Relevance?
- Resistance – Successful Break
- Resistance – Failed Break
- Resistance – Tested But Not Broken
- Resistance – Becomes Support
- Support – Successful Break
- Support – Failed Break
- Support – Tested But Not Broken
- Support – Becomes Resistance
Specific Key Levels
You may wish to expand upon the basic S/R structure and study some specific levels in a little more detail.