The currency market week ended very bearish on the Euro.
Should we, day traders who take trades on M15 H1 really care about fundamental? Or should we trade based on what we see on those charts telling us?
It is quite funny to talk to about something that sometimes I found very confusing.
I am wondering if those who have power to make the Euro diving actually looked at Euro 4 Hours chart and said ‘let sell the Euro since it is at resistant (near 200MA) and has divergence’J.
By the way, Euro has been in down trend (moved more than 1500 pips) since early May this year and retraced about 240 pips up recently. Lots of scalpers got stopped out from their longs as their technical analysis based on M5, M15 told them to go …
I am lucky to have those seniors on forex factory.com forum keep talking about how relaxing they trade on H4 and Daily charts so they can enjoy their days. That made me thinking to change my currency chart displays to M15, H1 & H4 and D1 instead of M5, M15, H1 which I still do for my oil trading from 4.30AM – 10.30 AM EST.
The challenges a scalper faces when moving charts to higher timeframe are widening stop loss and do not dare to stay in the trade for bigger profit since we used to look at next S/R on small time frame and jumped out, and staying in the market too long making us stressed because we stared at our charts for every movement of candles worrying market would take back our profit.
Will see you next month, the last month of year 2014.
Happy trading and don’t forget to be disciplined and stick to your trading plan.