Lets say you have two possible trades coming up on two different currency pairs.
On the first one, both, the long term chart and the short term chart are connected, pointing up.
On the second one however, there is a little bit of discrepancy between the different timeframes, long term charts are pointing up, while the short term chart are pointing down.
Which trade would you feel more comfortable taking?
That’s right… the first one.
It’s all about being in the right side
Why is that?
Because when everything is connected, the market is more likely to continue in the intended direction.
In the other hand, when something is not clear, or there is discrepancy between different timeframes, well… its not that likely to continue in the intended direction.
Tags: time frames, USDCAD Analysis
Yesterday I opened my AUDJPY trade, I really like this one because of its risk reward ratio, I’m risking 43 pips and I’m trying to get 405 pips… good ha? Make your math, what would you get if you risk 1% of your account in this trade?
Anyway, I’d really feel more comfortable once the AUDJPY breaks the ST resistance level shown below:
And I have another one in the USDCAD. It’s been painfully slow, but moving in the intended direction, so I guess it is alright:
Tags: AUDJPY Analysis, forex, USDCAD Analysis
I’ve been waiting for the USDCAD to retrace back to the main ST resistance level around 1.0249. It was a strong support earlier this week, but yesterday it broke through this level down and it looks like this level will keep the market from reaching higher levels:
As long as the USDCAD keeps trading below the ST resistance level I’ll be looking for short opportunities.
Tags: forex, USDCAD Analysis