The trends on the daily time frame are getting clearer and that means that the 240-minute and 60-minute charts will be better candidates for follow-through.
I had avoided these time frames when the daily charts were range-bound and that’s because when there is no dominant trend (up or down) on the end-of-day time frame I think that puts even intraday swing trades at a disadvantage because there is no dominant PSYCHOLOGICAL opinion of the market.
The trends on the daily are a welcome return even if the time of year for their transition is not ideal…they’re not. I would rather have seen this organization of sentiment and momentum come the first of second week of January and not going into the holiday season – but we trade take price action as it comes…and react with the tools and strategies we know best.
I will be paying close attention to the daily charts and their clarity which is a topic I speak about in today’s ForexAM.
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