Hello traders. When in an uptrend I wait for a close above previous peak to establish a new trough. Sometimes price breaches the level of the peak only to close beneath it with a wick protruding. I then would wait for a close above the wick and only then establish the new trough. What do you do?
Are you looking at a single timeframe only, or different ones to set your levels. Could be SR or big round number or trendline. Like where is the peak in the larger picture?
I confirm and assess the trend using the highs and lows but when looking for an entry signal the close is often more useful. But I am not fanatical about this, if the markets generally are clearly trending across the 28 major pairs I might use breach of the high or low.
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I use multi timeframe analysis. I would establish the main trend on 30M and then go to the 5M looking for new peaks and throughs and would wait for the closing price to be beyond the last peak.
I have tried both breach and closing price but am getting a feeling that closing prices are stronger. I have to do more backtesting though.
I take trendlines and the highs and lows from the daily and weekly. I’ll put those on a chart and then look at the 4h and 1h too, more lines for the highs and lows and were price accumulates or ranges. And then apply either a 5 min scalping strategy or trade on the 1h. It’s crazy how price will react around some of those higher time frames to the pip!
i’m skeptical about this because closes are defined by the user rather than by the market
i don’t hesitate to use any break of the high/low if there’s a clearly identifiable trend
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Its true that closing prices on a stock market are the most important prices of the day - everybody in the market has had all day to “vote” on them. But there isn’t even universal agreement in forex about what time the close should be.
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