Hi guys. It is the third day I am sitting with an old pc of mine, which does not work very properly, therefore I can simply remind you a few things till my computer will be fixed. Today I wanted to stress the importance of looking at the big picture. How can we do it? By looking at long term charts. That’s how you should start your market trend analysis.
You should always remind yourself whether the market you are studying is in a big move, range or is going sideways. Daily charts, with the help of 4 hour charts can help you to do it. When you see that you are in a move, wait for counter trend moves and when they are over jump back to continue going in the direction of a trend.
If the market is ranging, wait for it to reach important resistance or support levels and reverse there (after forming a reversal pattern). And if the market is going sideways, I would simply stay out of it and wait for better opportunities.
Hope that helped. See you tomorrow.
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.