Hi all,
I have been trading for a few years, tried a bunch of different stuff, but I have settled on price action. I wanted to start a trade journal, because I have realized that through writing about and explaining aspects of trading, I am understanding it on a deeper level myself (so if anyone has questions, feel free to ask). My style is very simple and clean, my primary tools are the price action itself and support and resistance. I still consider myself a beginner in a sense (although my trading has gotten much better in the past 6 months), so…I am always open to advice or suggestions (though don’t feel bad if I choose not to take that advice please! Sometimes, what works for one, doesn’t work for another). Since it’s the weekend and I don’t happen to be in any trades atm, I thought I would scan the charts and discuss possible opportunities for next week.
I like to start with the monthly chart to get an idea of the big picture. It really takes just a second to do this, also, this is where I like to identify my major s/r levels. Just for example, here is the USDCHF monthly chart:
So, I am seeing a rejection of support at 0.85800 with possible ranging between this support and the resistance at 0.99200, as well as between the bearish sloping channel that I have indicated. And, with the price sitting at the top of this upper channel boundary, I will be watching closely to see how it reacts.
Let’s look at the weekly briefly as well:
Here we can see that it [I]appears[I][/I][/I] that price broke through the upper channel boundary two weeks in a row, and closed below it each time; however, when we look at the daily, we can see that price did not actually breach the channel boundary:
I think that price will likely drop a little further to test one of the two indicated minor support levels before coming back up to test the upper channel boundary. (See below: there was a bearish inside day set up, which has dropped in price some, but the move is probably not over yet.)
Well, this is probably overkill, so I will leave it at that. Be back Monday!
Lexy