Hello all. I am a little gun shy posting here as I am extremely new to FX. I have a few quetions that I need to ask as a check on learning if you will.
1) When I look at a daily chart and establish that there is a downward trend, am I waiting for the peak of a swing-high retracement to take place before going short with the pair? Is this the "Big Picture" of the strategy, and we use S/R and Candlestick patterns to indicate the end of the swing and enter the pair?
2)In the initial lesson you showed two charts. One was the daily USDJPY showing a clear downward trend and the other the H4 USDJPY showing a clear upward trend. You explained how the H4 chart was simply a retracement in the Daily and this is the chart we are trading. Here is where I am confused. By this, do you mean we are going long on the retracement, or we are waiting for a candle stick indicator to appear in which to enter short in the daily downward trend?
I do greatly appreciate you taking the time to assist.
Regards, Eric
1) When I look at a daily chart and establish that there is a downward trend, am I waiting for the peak of a swing-high retracement to take place before going short with the pair? Is this the "Big Picture" of the strategy, and we use S/R and Candlestick patterns to indicate the end of the swing and enter the pair?
2)In the initial lesson you showed two charts. One was the daily USDJPY showing a clear downward trend and the other the H4 USDJPY showing a clear upward trend. You explained how the H4 chart was simply a retracement in the Daily and this is the chart we are trading. Here is where I am confused. By this, do you mean we are going long on the retracement, or we are waiting for a candle stick indicator to appear in which to enter short in the daily downward trend?
I do greatly appreciate you taking the time to assist.
Regards, Eric