Since I am concentrating on the shorter time frame charts, I often miss the bigger picture of market movements. For example, yesterday's closing price of GBP/USD is actually a new valid entry (1.8873) for swing setup based on the D1 chart. After yesterday's wild price swing due to the FED decision, I was already (mentally) exhausted by the intraday movement and already out of my position.
I like the daytrading style very much since it provides me with quick pips (if I could stick to my discipline and follow strict rules). Hence. I am not going to abandon my trading style yet. In fact, my plan is to add a swing trading account and have myself familiar with this approach.
Let's make lots of pip (money).
2 comments:
Hello, before you take the trade, do you watch other pairs to see what they're doing (meaning if they are near support/resistance or have broken out of them already)? I'm new so just want to get some ideas. Thanks.
Yes, I always monitor other currency pairs to obtain an overall picture of the underlying market strength. For my case, it is the strength of the US dollar since the currency pairs which I normally trade are USD/CAD, USD/JPY, USD/CHF and GBP/USD.
I pay more attention to price action (i.e. breakout of candle sticks) rather than support/resistance level.
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