World-class athletes do not just compete in matches; they spend countless hours in film study dissecting every play, footstep, and tactical decision. In technical market analysis, your post-session chart review is your film room.

The Three Categories of Trade Execution

When auditing your daily chart logs, every single execution must be classified into one of three distinct buckets:

  1. Good Trade, Winning Result: The setup matched your predetermined volume profile criteria, risk was managed according to protocol, and the market reached your target.
  2. Good Trade, Losing Result: The setup followed your playbook flawlessly, but the market auctioned against you and stopped you out cleanly within your defined R-multiple. This is completely acceptable and expected in statistical trading.
  3. Bad Trade (regardless of P&L): You entered impulsively without volume confirmation, moved your stop-loss, or traded during an illiquid session. Even if this trade made money, it constitutes a structural flaw that will damage long-term capital.

Key Metrics to Track in Your Daily Journal

  • Contextual Setup Type: Was it a Value Area Rejection, a Point of Control Bounce, or a Breakout Acceptance?
  • Initial Risk (R): What was the exact dollar and percentage risk at the time of entry?
  • MAE (Maximum Adverse Excursion): How far did price move against your entry before continuing toward your target?
  • MFE (Maximum Favorable Excursion): Did your exit capture the primary expansion, or did you exit prematurely due to anxiety?

At Future Connect Point, our students submit their daily trade logs directly into our weekly clinic. Consistent, objective review is the fastest catalyst for lasting market mastery.

Study With the Author

Want to apply these volume profiling and order flow methods in live market conditions? Explore our 4-Week Volume Analysis Intensive Masterclass at Future Connect Point.

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