Here is the chart

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How should I position myself here? It seems to be a fairly consistent tunnel for over 6 months... any thoughts? Or, any other lines that people would suggest drawing on here? THANKS

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A technique to improve your trading decisions
Multiple Time Frames combine with RSI and support/resistance
here

Ok so I added the RSI to the chart, along with the MACD. After looking it over, despite the overall trend, I don't think it's a very good place to enter the market. Despite the general upward trend, it seems as though the market might be headed down. So, if you're more a short term investor, perhaps you want to short the pair, and reevaluate things when it gets closer to the support line. However, I'm not sold that the market is even heading down in the short term, as the MACD shows that the macd line is still above the signal line.

Grrr.... any opinions? Given that I don't think the risk/reward is good enough either way, I'm thinking about holding off for right now.

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A short term investor may want to have a look at Macd 7 10 5 and use some shorter trend lines, not necessarily parallel trend lines... and also add a couple stochastics to pick up the short term moves..

ie catch the trends within trends. look for trend line breaks...

It seems to me that the longer time frames are more profitable for traders, even though I like to day trade..LOL

My chart has some stochastics and macd to help me locate trades on a shorter term............ and I am attempting to illustrate trend line break for a shorter term..

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I really think trend lines help traders to trade with trend and always remembering the old saying “the trend is your friend”. I’m trying to figure it out did we developed a downtrend yet in the USD/CAD pair. I can see the uptrend has been broken two times already. If we look at the RSI we had an oversold reading and we see the pair trading at 1.0276. I think in the next 12-24 hours we going to see a decline on USD and the new trading range it may be at 1.0255-1.0265. That will establish a downtrend. We’ll see what is going to happened. Open for critics or suggestions.

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Because there has been a lower lo and then a lower high, I think we can say that the downtrend has been established....

Hi there! Thank you for the respond. I read some of your previous comments. You make good points. I am new to forex and I am trying to get he basics down first.
I look forward to more posting.

I have another suggestion, but this time to short the USDCHF



The recent trend seems to be to the downside. The candlestick broke the lower bollinger bands, and the EMA has also fallen below the SMA. The pair is trading below parobolic SAR indicating to set stops above the pair instead of below. Moreover, MACD recently crossed paths to the downside and continues to expand, while RSI continues to sharply fall, illustrating no recent divergence.

Any input to this idea is appreciated.

Yeah, its unfortunate, because day trading is much more fun, but like if you look at the King of the Minis, you can see that the two best trader kinds are the guys who daytrade and basically get 90% of their trades right, or the people who get into a position (usually against the USD) and have held it for years. It may be boring but, alas, such is life.

Anyway, a few comments for the past few posts:
Alfa, definately looks a new trend... lets get on board!
DBiray, I'm not sure what to think here. On the one hand, maybe you're right, and this downward trend will continue (though on an hourly chart, there's more volatility... so who knows.) However, I have three reservations: 1. This is an hourly chart... so that charts aren't going to be as useful as a daily or weekly chart. Two, while the MACd looks ok, at the present time (on the chart), you're a little late for catching it when the lines crossed, and as a result, it wouldn't surprise me to see the chart bounce back up soon as the MACd line goes back up. And finally, tho the RSD is near 30, its still above that level. So if you go short, I wouldn't expect to hold it for too long, I personally think this pair is about to bounce back up.

So I wrote that above paragraph first, and just now checked on the updated chart, and the jury's still out. That next hour turned into a doji, and the following hour came back up, but now its going down again. Very interesting... it hit the lower band, and also notice that the bands are expanding. Perhaps a better idea is to go long on the pair... but I'm open to input.

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When deciding the direction of this instrument.... let's also have a lo9ok at the higher time frame...... should we disregard the outlook of the higher time frame. we may well be giving away our account....

The one hour chart is just one part of the decision.... the 240 minute chart and the daily chart are where the real action are.. the trend on those charts is to be regarded as much more powerful than the 60 minute chart..

Please do some research as to what I have just related, I am so sure you will find that what I suggest has worthy merit..




dave

One thing I want to point out is... the experienced people who are writing all of the articles for DailyFX seem to be using daily charts for their analysis...

There must be a reason for that..

Trading Forex on a fast time frame is a way to give your account away...

There is not the volume on a 5 minute chart to assure you of anything.... and that forces a person to use unrealistic stops....... no volume means volatility that can go against you..

Perhaps we should canvas the experts as to what their view is on trading time frames... and until we do that..... be careful of less than 240 minute charts

Hi there! The USD/CAD is giving us some hints. I was positive for yesterday downtrend and I still believe that the same trend will remain for the next 12-24hours. I see the trend being tested twice and that makes it even more significant. I would predict another try at 1.0221 levels and if the trend remains unbroken I will go short even lower than the last resistance at 1.0180 levels. Let’s see. I was right yesterday ….
Happy trading!

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So as we all know, the HKD is held within a fixed range of 7.75-7.85 per USD. So, I would think that this would provide a very good trading opportunity. The problem is... I'm not 100% sure whether to go long or short.

If you see the chart, I put a MACd on there. It shows that the best time to go long was a few weeks ago (at the cross), but it's not much help for deciding what to do now.

The moving averages are similar... the best time to get in was a few weeks ago.

Also, I drew in orange what looks like a double top, and if that's the case, now is a great time to get in going short.

So, I'm thinking about going short. Eventually, the pair is going to go down... but the good news is that it can only do down so far. I'm obviously not the first person to think of this, so I would guess that trading this pair is more complicated than one would think... who's got an opinion here?