Watch this setup in the AUD/JPY
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
trading time frame of several hours to several days. For a free trial to
Dave Floyd’s Daily Forex Alerts
Time Frame Confluence
While many
FX traders attempt to scalp the FX market, from my experience, pushing your time
frame out is more rewarding and less of a headache. Granted, the ‘fun factor’
is greatly reduced as I maybe take 3-5 trades on average in any given week, but
the process of identifying set-ups provides ample intellectual stimulation.
To review, I
only look at 4 time frames for my technical analysis, 60 & 240-minute charts, as
well as daily and weekly. While I do not necessarily take my entry cues from
the daily and weekly charts, I certainly want to make sure they are in harmony
with what I see on the 60 & 240-min charts.
The last
24-Hours have been somewhat quiet. Traders seem to be digesting the losses in
the dollar (DXC) from yesterday. The result has been few opportunities (at
least from my vantage point).
Nonetheless,
there is one trade that I have been monitoring for several hours now, the charts
below sequence my thought process along the way. These are the same types of
charts and analysis I share with my clients on the research service.
Trade
Idea:
The chart
below illustrates the longer-term viewpoint while the second chart zeroes in on
a short-term trading opportunity that may take 1-3 days to play out.
As always,
feel free to send me your comments and questions.