✍️Weekly Trade Plan & Recap 6th-11th July
To understand the Dollar, you really need to take a birds-eye look a the charts! Plus analysis for the EUR/USD, Gold, Silver, Copper, S&P 500, WTI Oil, Bitcoin and Crypto Alts.
Many day traders rarely look at higher timeframe charts and that’s a huge mistake, because they are missing the context in which to take lower timeframe setups.
Higher timeframes “win the day” and if you are trading counter to a higher timeframe bias or the market is at a key level, you should at least be aware of it.
Take the Dollar Index for example…
The monthly chart shows the Dollar has reached the lower trendline of a large channel.
This channel could send the Dollar up for a bit, so lower timeframe traders who are short, should be cautious here.
Does it mean we will abandon our bearish bias? Absolutely not. Just be aware, markets don’t move in straight lines.
Let’s look at the weekly chart next…
After a large bearish drop, the market initially bounced at the small yellow Demand zone. It then rejected at the white Price Pivot Zone (PPZ), continued down to attack Demand multiple times and finally broke through.
These are the higher timeframe details that day traders often miss.
So, when the market traded sideways last week, it should have come as no surprise, because it was battling with a very mixed bias … a bearish bias from everything we have discussed above and a bullish bias from a bounce at the channel support line.
That’s why, when I attempted a long last week on the 15 minute chart, I didn’t hang around for long and scratched the trade before NFP. It’s also why I’m more likely to hold trades for longer when the higher timeframe is in my favour.
When we have a bias in mind, we can start to look at medium timeframes and mark out the charts in more detail…
This bit is for members, so consider subscribing! We’ll also look at the Euro, Gold, Silver, Copper, WTI Oil, S&P 500, Bitcoin, Pepe, Tron and Cardano.