Something I personally do over the weekends is review the weekly charts to identify the following:
.....more to follow in later posts.
- Overall trend direction of currency pairs in the portfolio;
- Review volatility and propensity for current trend trading based on a long term visual history assessment of the instrument;
- Determine longer term trend nature and weekly direction to bias my view of daily trends on the watchlist; and
- Determine whether current trend performance is consistent with long term history or an anomaly.
While I recognise that many traders would be saying 'why keep instruments in your portfolio that do not have a great track record with trends ?'....my philosophy is that all instruments have their day in the sun....and it is impossible to predict when that will happen. There is more than enough upside potential in this approach through its diversified nature to allow for some instruments to have very stagnant periods.....so I keep them in. What is not trending today, may very well trend tomorrow.
Over the next few posts I will include charts of the weekly assessment. Annotation is included in the charts. If you have trouble reading them then I will start including the annotations in the post.
AUDJPY - Weekly
.....more to follow in later posts.