Looking at the longer term set ups this week

I had a quick talk about holiday trading with a fellow trader this morning.

The thing on my mind was how get across the best handle trading during Novemeber and December. My advice is to take a longer term look – to “slow down the action” by watching at 240 minute and daily charts.

In fact I mentioned that I typically takes Novemember and December off and comes back after the New Year. That would probably be best for most traders and investors. Make some key decision about your holdings and positions and then take a longer, slower approach.

Ofcourse this cannot be done on 15, 30, 60 minute charts. This would have to be done with longer term intraday charts like the 240 minute and the daily. So taking that advice here are some “slower” charts that I will be watching this week.

There are quite a few set ups on the four hour charts and I like this because I have the perfect balance of intraday and end of day with this particular timeframe. In fact I have set up a specific 240 minute interval scan on my Autochartist so that I can get alerts for this interval as they appear.

I won’t forget the daily charts either but just remember that the risk tolerance for daily is higher than a 240 which I why I prefer the 240.

The daily chart of the EUR/JPY is following through on the turn lower and is now looking at the 160.00 major level as the support here on a relatively quiet day is holding. The remainder of the week will not be so quiet. Today is the only day without big economic releases.

The USD/JPY is heading lower towards 108.00 again. Prices did head below this key level but quickly found buyers. The downtrend on the 240 is not as steep as the daily chart but the set up with the falling wedge does offer a number of potential entries depending upon what prices do from here.

The EUR/USD continues to climb higher and 1.5000 seems inevitable. The level is dependant upon the contined U.S. Dollar weakness. Support is at the lower uptrend line and 1.4750.




All charts used with permission from Autochartist chart pattern recognition and alert software.