Hi everyone
This evening I was looking at the AUD daily charts. I have not really looked at the AUD much but I thought I would today. One thing I have come to learn after reading some useful advice here in BP is that if I am looking at say the H4 charts, then take a look at the Daily chart as well. If I am looking at the Daily chart then take a look at the Weekly chart etc…
Looking at the AUD/USD Daily i set my indicators up (Bollinger, SSD and now and then I take a peek at RSI) to look if there is indication of over bought or over sold. So looking at the Daily it appear that it is over bought (top of the SSD.)
I then decided to look at the weekly chart. Now I was not sure how to react as the weekly shows that in fact the price appears to be over sold, does it not?
Looking at this, as a newbie how should I read this? Weekly says one thing but the daily shows another (and I usually trade off the daily charts.)
Again I don’t usually trade the AUD so now I was thinking is this a one off or not. I decided to then take a look at the daily and weekly charts for the GBP/AUD.
With the weekly it appears or indicates the price is over bought.
I then look at the daily for the GBP/AUD and see that this indicates over sold, right?
So looking at both the weekly and daily for the AUD/USD and the GBP/AUD I’m confused. How should one look at this and enter a trade if the weekly and dailys are showing different patterns. Again i was always told to look at the larger time frame to get an idea on trends, movement etc, so if thats the case would you go by what the weekly charts are showing?
Maybe I am missing something here and again I am new to this with a demo account…about 3 or 4 weeks in to trading I believe it is.
Thanks everyone (and I hope I have attached the screen shots in the correct order )