I was hoping I would get a view from the experienced traders on this forum and opinion on my approach.
I have attempted to trade on lower time frame charts previously but feel this is not possible for me because; a. I find it difficult to find the time between a full time job and other commitments to watch for detailed price movements according to particular data releases and to be in the right place at right time, b. my mind set is not geared towards short time targets as emotions take over quite easily! & c. the daily chart tends to cut out a lot of the ‘noise’ which is more difficult on shorter time frames. Additionally I am only looking to opportunities on the eur/usd & gbp/usd pairs and trying to understand these pair behaviours as much as possible.
I also use things like Fib retracements, RSI, Slow Stochastic, trend lines, candle stick patterns & support/resistance levels to help my assessment and of course what is happening fundamentally in the world.
My questions are:
• A lot of the fundamental news/analysis on line, in papers, etc is geared towards the shorter term impact on prices (i.e. over the next 1-3 days). If I am trading on longer term timeframes (i.e. 1-2 months) should I really be that bothered about these fundamental aspects and the impacts too much? Should I take a greater interest in technical trends/patterns instead?
• With pending trades I need to be more patient on this time frame. How patient is too patient? How long should I wait for a price to be hit and if each trade is aimed at gaining 500-1000 pips how long should the trades typically last? I understand I would aim to enter a lot less trades if I am looking at this time frame and on just these two pairs
• There have been occasions where some of the above indicators contradict each other. (i.e. a pair could be showing as highly over sold on an RSI (14) indicator but candle stick patterns/types could signify further potential uptrends or there has been a cross over of the two lines in slow stochastic). Of those listed above what one should I take note of the most/holds greatest significance on future price movements?
• Are there any tips and advice anyone could give me approaching trading on this time frame? What do I need to watch out for?
Any advice/guidance on this would be much appreciated.
Thanks