Nov 15 2015: BEARISH EURUSD WEEKLY; Last week produces indecision candle (Analysis Based on Weekly charts)
Criteria 1. Long term bearish channel 2. Medium term bearish channel 3. Short term bearish channel (now broken) 4. Price close below weekly SR zone at 1.0795x 5. Recent strong bearish price action 6. Last week closed as a indecision candle 7. Expect price to continue moving down to the 1.0504x support level
NOTE: Wait for price action to confirm the importance of these levels. I don't trade from the weekly chart. I use it to evaluate overall market direction.
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It's very wise to use long term charts to evaluate the overall market direction
orvilleawright
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Thanks. I use a top down approach. I use the higher time frames to determine overall market direction and to identify areas of support and resistance. On the lower time frame I initiate my trades at these support/resistance areas if the opportunity meet my rules. The idea is to go for the higher probability trades. Good luck with your trading.
KayJay
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Thank you very much, Well I'm not that experienced in trading but i use simple techniques like identifying the trends on the long term charts and placing trades in shorter time frames, playing with the trend :)
orvilleawright
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As they say 'The trend is your friend until it bends'. I also think that the trades that produces the highest risk to reward ratio are in the direction of the higher timeframe trend. A higher risk to reward ratio allows you to be wrong most of the time and still make money. But you have to carefully analyse/backtest the price action on each chart/timeframe and ensure that the market is offering the Risk/Reward ratio you are expecting. Thanks for your comments.