Partner Center Find a Broker

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.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.