If the monthly trend is up but the weekly and daily are down and I’m trading a 1H chart (uptrend) with a trend trading strategy, do I go long or short?
Thanks
It really depends on your own methodology.
Everyone has their own way of utilizing multiple time frame analysis.
I recommend reading our lessons on trading multiple timeframes here.
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Pippo suggestion is very sensible. My own response is “yes” and “yes”. That way you are bound to be right all of the time.
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The most profitable time frame according to some pros is trading from the daily chart. I would put in a 60 EMA (which won’t differ much from the 100 EMA) to use as a buy ABOVE and a sell BELOW the line.
However, if the 1hr differs from the daily chart, using the same EMA 60 indicator, I wouldn’t trade that pair.
I’m a great believer in synchronisation in chart trends at three distinct levels (Daily 4hr 1hr or Daily 1Hr 15m) like lining up three ducks in a row, because, IMO, it reflects consistency in fundamental market sentiment - if not, have patience, there are always better options.
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That entirely depends upon your trading style and strategy. You can make decisions based on the trading conditions.
That entirely depends upon your trading style and strategy. You can make decisions based on the trading conditions.