Hello forex family!
In honing my trading strategy, I’ve come across this example and am curious about how you would approach it.
On the daily chart, NZDCAD setup looks like this
Price is approaching the top of the channel, and is printing a pinbar (at the time of writing) just above the 0.8500 level. No divergences happening with the Stochastic so seems like potential reversal but no aggressive signals.
However on the 4H chart, NZDCAD gives a little more away
Here, we see the 200 MA holding as resistance and obvious bearish divergence on the Stochastic indicator. This seems to be a much stronger sell signal!
The question is: where do you find the balance between keeping things simple and having enough confirmation? In your experience, what is the validity (or not) of using the 4H chart alongside a Weekly and Daily chart?