I’ve always thought that the key to trading successfully is how you handle the long term charts…
It’s not that you have to trade off the long term charts, but you need to see what is going on in the longer timeframes…
Even if you trade off the 5 or 15 minutes chart… it pays to do some analysis on the long term charts.
Have you tried it?
It doesn’t even matter what system you use… You can use:
- Technical indicators
- Price action
- The moon cycles
- Your cat
If you trade always in the direction of the market condition, sooner or later you’ll have better results…
Here is what you need to do:
GBPAUD long term analysis
In this chart it’s clear that the GBPAUD is trading in a bullish market condition.
And if its going up, the best thing we can do right now is to look for long opportunities right?
And that’s exactly what I’m going to do.
GBPAUD short term analysis
Here is my short term chart:
Its got clear ST S&R levels, I’m a little worried about the level at the top though, because it has not been confirmed yet (its got small rejections on the second peak).
But that’s why I’m going to use a pending order and if my trade gets hit, I will get the confirmation that I was looking for.
Here are the details of my order:
Entry stop order: 1.7436
TP: open target
The next LT resistance level is 753 pips away from where the market is currently trading at, so we still got plenty of room before the market gets there…
I know I know… the SL is too wide, but remember regardless the amount of pips I use on my SL, I’m always risking 1% of my account…
So if my SL is 40 pips wide its the same as a SL of 120 pips… it mean 1% of my account.
Sounds good to you?
What do you think about my signal?
Are you currently trading the GBPAUD?
What kind of SL do you usually use?
Let me know in the comment section.