You always look at the immediate chart just above the one you are trading and maybe even one more. Just remember, if they are contrary to eachother you may not be in the trade very long. Ok, another way to look at it. Start at the 15 min chart and observe the price and the 100 SMA. Move to the 30, then the 1 hr etc......... You will notice that the 1 Hr has closed below the 100 SMA, however, the 4 Hr it is 170 pips topside. Instantly you get a long term target, the 4 hr 100 SMA at 1.3313, which happens to be the 50 % Fib level from the 4 Hr move up starting back on March 22. Now I don't want to confuse you, but on Friday and Sunday night I trade only the 15 Min timeframe which would take me out to the 1 hr for trend and that is Bearish. The 4 hr as I said is Up so the trend may only be short lived and that would be long term to the 1.3313 level. Now thats not to say this won't retrace a few times on the way down at these Fib levels I drew earlier.
Now, you can look at this another way. Say you want to trade the 4 hr timeframe. you would wait for an entry and the perfect entry would be a bounce at the 100 SMA with the stop just beyond. When I see the opportunity I will let you know so you can see what I mean. Notice how this trendline coinsides with the 100 SMA and the 50 % Fib level. A great place to look for a bounce for some heavy pips to the high side and a perfect place to use the headfake filter I outlined earlier. It's funny how all these things fit together like a puzzle.
MK
Now, you can look at this another way. Say you want to trade the 4 hr timeframe. you would wait for an entry and the perfect entry would be a bounce at the 100 SMA with the stop just beyond. When I see the opportunity I will let you know so you can see what I mean. Notice how this trendline coinsides with the 100 SMA and the 50 % Fib level. A great place to look for a bounce for some heavy pips to the high side and a perfect place to use the headfake filter I outlined earlier. It's funny how all these things fit together like a puzzle.
MK
DislikedI just had an epithany.
FXexpress, really all your saying is trade in the direction of the prevailing trend and set your stop-loss at the point at which the trend has change direction, right? Obviously, I'm ignoring PT.Ignored