Forex Price Action

[juicypips]

Hello,

this question has already been asked by someone else but the context was unclear so I think it was overlooked.

The question I have is the following:
How do we handle contradicting signals?
Right now there are 2 examples

1. EURGBP Daily vs Weekly
   Looking at the D1 we see that the short term trend is up and price has retraced to a good level forming a pinbar. However looking at the W1 we see that the medium term trend is down and price has retraced to a good level forming a 2BR.

2. GBPCHF Daily vs Weekly (not as good as the other example)
   Looking at the D1 we see that the short term trend is down and price has retraced to a good level forming a pinbar. However looking at the W1 we see that the medium term trend is up and price has retraced to a good level forming a 2BR.

Both pairs seem to go in the direction of the weekly chart.
Both Stop Orders were not triggered, so there is no loss. But if we wouldve traded the Weekly signal we would already be in profit by now.
So my question again: Which signal do we trade? Do we set Pending orders for both directions? Or do we take the weekly signal as there is 5 times as much information in the candle?

niX.

Hi nix, don’t get concerned with multiple time frame analysis, each time frame is independant of one another and has their own levels etc so if trading a daily chart we don’t even need to be thinking about what’s happening on the weekly.

Your are correct in saying signals on the weekly are more powerful as there is more information contained in the signal, I would say in that situation if a tradable opportunity presents itself then just trade what you consider to be the better setup.

Also I will just say if you are taking multiple setups where one of the pairs is the same (ie in your case a eur/gbp trade and gbp/chf trade) don’t put all your eggs in one basket!

Hope this helps
Steve