I've found that analysing on the bigger timeframe is always great to find out which way we should be trading. From this, we can see that we are approaching a major level where price has previously reacted aggressively.
Another nice one, @Wicktator - a longer-timeframe view always gives a great perspective on overall direction. Price is right now toying with the 38.2% Fibo retracement level of the last big run down. Just marking it up on the Monthly is a useful exercise in its own right, to highlight key zones and levels. 3,000 PIPs would go down very nicely, thank you!
WicktatorFX
⋅
@loudon3, 38.2 fib lines up perfectly for our short play! Very good spot!
I didn’t notice the previous drops until I went onto the monthly. So it’s definitely a good exercise to go on to bigger timeframes to see what has happened historically. Again, nice one!
loudon3
⋅
@Wicktator, And if you look back to the 2nd Quarter of 2016 and the 2nd Quarter of 2013 you will see that that 38.2% Fibo level has acted as both Resistance and Support in the past. Once I see past S+R levels, Fibo levels, channel tops / bottoms, etc begin to line up with each other, I have more confidence that it is a good level to watch, in this case for a potential Short trade. I've learned that - if in doubt about a trade setup - go UP rather than Down in terms of timeframe. Longer is better for building a picture.
WicktatorFX
⋅
@loudon3, Absolutely. The bigger timeframe is often so much clearer and has less "noise". Paul, have a look at ABC corrections. It looks like on the monthly it's creating an ABC correction
T-RO2000
⋅
I have £1000 and put a 0.40 on sell do you think I'll get cut out
Also, we always wait for confirmation before entry. Have a look at the telegram and see what the confirmation we are looking for. Goodluck!
Karsventure1
⋅
Why not a bull run? just curious
WicktatorFX
⋅
@Karsventure1, hey mate, there are more things lining up for Shorts than there are for Longs. Also, all JPY pairs look like they’re about to reverse. Especially USDJPY. However, if we break that trendline impulsively, we can flip our bias easily and get a long entry easily. Either way we’ll be covered 😉