Hi Everybody,I have been talking today on the Day Trading Blog about only trading when the picture is clear, and the same applies to FOREX. Sometimes the “larger degree” picture is unclear, this is when professional traders stand aside and wait for the picture to become clear. Too many armatures traders “overtrade” and what to trade all the time, and as such loses needlessly. Here is a good example on the EURSD,
Let’s start with the larger degree trend on the 4hr chart, as you can see, the trend was clearly down from the last minor DP high into the recent DP zone. OK, now we have declined below this level, but at the time we had a 1hr TS3 sell, the 4hr chart was still heading down to DP support. So “at that time” the larger degree trend was down.
Lets now take a look at the 1hr Chart
Steve
