trading analysis

Trading analysis is a broad topic, but combining technical analysis with strict risk management is essential, especially when trading with prop firms. For example, using classic pivot points—where the pivot (P) is calculated as (high + low + close) / 3 of the previous session, with resistance R1 = 2P - low and support S1 = 2P - high—helps traders identify key intraday reversal or breakout levels. However, pivot points are not foolproof and can fail in strong, one-directional trends.

When applying any analysis method to a prop firm evaluation or funded account, always keep your daily loss limits, maximum drawdown rules, and news restrictions in mind. Technical levels should always align with your risk-to-reward ratio and position sizing to protect your account.

How do you approach your daily market analysis? Share your setups and strategies below so we can help each other grow!