Hi, knowing when Trading Longer Timeframes is the best choice in forex markets.
A couple of weeks ago I explained how there were signs, on weekly charts that some big moves were brewing, especially on the Cad. The “loonie” has a 1000 pip triangle which suggests it was going to shoot up, or my preferred down, for a 1000 pips.
It looks s though this could be the week as it HAS broken the trendline on a daily s well as rejecting at the all-important 1.4000 level, so how to play it now? See the video.
I have been away for a few days and missed the intraday moves ☹
I explained on Sunday in my analysis why Monday would probably be dead “like watching paint dry” and it was.
As I was leaving on Tuesday morning, everything started to move and I had to go.
However, before I left I watched one of my screens with all the majors on it and could clearly see that this was a $USA move as the Euro/Gbp/AUd /Nzd were all moving higher, quickly and at the same time.
Conversely, the Cad & Chf were going in the opposite direction, so we had clear correlation and it was obviously $ weakness – see the video for the explanation and significance.
There were some setups on the 30 minute, especially the Cad, but in general, when markets kick off its best to zoom out and look at the bigger picture. If you are in a trade where is price “probably going to stop” and why (for multiple reasons). Equally if you are looking for an entry.
In the forum Rob was looking for potential entries on the Euro/$ and I said “This morning there is some $ weakness and the Euro/$, along with other majors is surging higher. The area I am looking at is 1.100 on this pair as per Sundays analysis. There are multiple reasons on the daily and the 200ema just above for a stop. It will also be over todays range if it gets up there. I am looking at areas where price will probably run out of steam and that one is the stronger one for me………”
I was looking at previous support & resistance, the daily 200ema, the whole number, the daily range, what the Chf was doing (it bounced off a daily trendline at the same time) etc to help me make a decision- see the video.
The Gbp/$ bounced off the daily trendline that broke 2 weeks ago, with the daily 55ema just above.
The Aud stopped at the double top, weekly 55ema, whole number etc. By which time it had done 140 pips for the day when the average has been 80, so once again MULTIPLE REASONS.
The rest of the week.
I recommend leaving things alone now. I do not trade Fridays anyway and price appears to be drifting as I type now at 13.40 London time. Price could well break through some of these big areas and then pullback. The safest plan is to let the weekly and monthly candle print and we start again on Monday.
Enjoy your weekend
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Trading Longer Timeframes