I will be using the weekly to define the trend direction so I can see wether to look for longs or shorts in the daily before going to the 4h trigger chart.
From watching Hector Devilles videos he makes it seem as simple as searching for higher highs and higher lows for longs and lower highs and lower lows for short.
But I have just started to try this and it seems not so simple. To me it seems that I have to apply all the trend analysis to the Weekly as I do for the Daily I.E S/R Trend lines, Fibs etc…
I’m slightly confused.
I can clearly see an uptrend on the weekly with big swings, however there will obviously be retraces in the weekly also. So I know I will be looking for longs “but” what about during a retrace? A weekly chart retrace could last a long long time. During a retrace on the weekly am I to totally forget about the overall trend being up and go for shorts as the retrace suggests selling the opposite direction?
And not only this. I will need to know when the retrace may end before price continues up. So this is why I will need to apply fibs and the rest.
So my overal question is.
If deciding to trade in only the direction of the trend. We stay out of the market during a daily/4hr retrace… so should I also stay away from any trades during a weekly retrace?
I know i wont be making any trades at all for many weeks on a particular pair but i’m just concerned about buying on the daily when its nothing but a longer term retrace.
Nevermind I think im just being an idiot. I think im looking at far too much data on the weekly. If I was just take into account I could make many trades within a push up AND a retrace and just look at the retrace im in. I wil be able to ignor the rest of the data considering the retrace lasts a long time. Within this retrace I can see lower highs and lower lows. So i think I answered my own question. I should be looking for shorts. thanks
I have decided to uses the data after the vertical red line to see im looking for shorts on the daily. But clearly there is much longer term support right where price is now.
This bar in itself will last 7 days as will a couple after it. This is how long it might take to be sure if price will break through or bounce. Not even taking into account a retest if it breaks… in which time may also be dangerous to go short if your facing a retest before continuing down.
So in potentially 1 month give or take… what do we do in this time? There is no bias at all. Move onto another pair?
If you are unsure about it place a hedge. the way I see it is place a future order (sorry i dont know the right terminology) a BUY Limit order or something just a bit above the last red candle if a green candle forms chances are its gonna rebound and go up SL just below the trend line if u believe the trend line may break place a future sell order just below the trend line and place a SL just above the trend line where the red candle forms. Now how much u want to risk and such is up to you but when in doubt u can always hedge. Not that difficult. Also since your gunning for hundreds of pips cuz your looking at the weekly chart keep in mind that looking at every news report is not what u should be doing you wanna gauge out overall market sentiment, keep in touch with the news that moves this pair however understand it is an overall combination of reports on a fundamental level that will move the pair up, down or sideways it takes more than one report of data to move the pair in either direction.
