…I wanted to offer up my two cents here to the discussion already started.
A few things about any set up…to me describing a set up has to start with the market cycle on a particular time frame. It’s not enough to trade — for example — the USD/JPY.
What type of set up?
Is it a trend follow or a reversal or momentum play?
So here’s two set ups. If someone told me they were usually risk averse or a short term player…the 15 minute chart is a good place to start.
This timeframe is heading higher in a 12 to 2 o’clock Wave angle, it’s an uptrend and therefore a trend follow until or unless the Wave angle levels out or prices trade down through the bottom of the Wave.
The entry would be off the top line of the Wave (34ema high).
The USD/JPY or any pair for that matter cannot and should not be summed up by the direction of a single timeframe. Here’s a look at the 180 minute chart. Notice that this trend is DOWN!
The bounce that has caused an uptrend on the 15 has created a correction to the bottom line of the Wave on the 240.
Here’s where your own overall opinion of the trend and risk tolerance comes in. The daily chart is heading lower and for many traders the direction of this chart is like a filter. Since prices are below the Wave and the Wave is starting to angle at a 4 to 6 o’clock angle then the “overall” opinion of the USD/JPY could be considered bearish.
There are a number of individual things to consider to help you make the choice between long or short term intraday timeframe set ups.
What I wanted to share here was the fact that simply taking a trade in pair without thinking about the exisitng trend (or lack of) and the timeframe of that trend will always leads to uncertainty and that’s never good for a trader!
and again here’s the original thread…
Oh and I did have an earlier update from today about Summer Dolrums and a great Swing Trading instructional video….