Looking at the weekly chart we can see that price broke a key support level. After breaking out the key level it has retraced, forming a three wave corrective pattern which has also been broken from a sharp move to the down. That's a very nice spot to go short
Thank You I wish I could see the same way as You do the chart so if I understand one has to follow always the Higher TF for a direction and watch the small TF for a correction and eventually after the correction on the small TF trade according in the direction of the long TF. So when You decide when to resume trading according to the long time frame has the price to return at the same level and pass the beginning of the correction I hope I am not confusing You now I apologise if I do
RalfDiana
⋅
wait I mean looking at both charts on the weekly one they both broke the trend line down and what I read from Your comment You say to sell the DAX but on the GBP/AUD You say regarding the 4H chart to buy after the retracement to the trend line. So I assume to buy the GBP/AUD for a short term profit and then later sell it because the weekly chart points down
Fxprotrader
⋅
Ok, i see.. I use higher timeframes for my analysis. I then switch to lower timeframes for a setup. In gbpaud i am going long to catch the begging of the correction. In Dax the correction is probably over so i am looking to go short. I hope that helps..
RalfDiana
⋅
Why the DAX is a sell according to the weekly chart and the GBP/AUD that has a breakout as well in the weekly chart is supposed to be a buy according to the 4 hours chart after the pull back? I do not get it
Fxprotrader
⋅
I don't get you? What does DAX has to do with GBPAUD?