AUD/USD - DAILY TIME FRAME, EXAMPLE OF TOP-DOWN ANALYSIS
HERE IS AN EXAMPLE OF HOW I PERFORM A "TOP DOWN ANALYSIS" ON A CURRENCY PAIR
THAT I TRADE. A BIG PART OF HOW i DO MY ANALYSIS IS TO IDENTIFY IF PRICE IS IN A
TRENDING MARKET, RANGING OR CONSOLIDATION. NOW OF COURSE ON LOWER TIME FRAMES
IT WILL APPEAR DIFFERENT. I USE THE DAILY TIME FRAME AS MY 'ANCHOR CHART'.
THIS MEANS THAT I TRADE IN THE DIRECTION OF THE PREVAILING TREND OR MOVEMENT
OF THE DAILY TIME FRAME, ENTERING INTO A TRADE ON THE 4HR OR 1H CHART.
I FIND USING HEIKIN ASHI CANDLES GREATLY AIDS ME IN IDENTIFYING POTENTIAL
PATTERNS AT A GLANCE. IT ALSO HELPS CLARIFY TREND AND PULL BACKS.
ANY QUESTIONS, PLEASE DON'T HESITATE TO MESSAGE ME!
THAT I TRADE. A BIG PART OF HOW i DO MY ANALYSIS IS TO IDENTIFY IF PRICE IS IN A
TRENDING MARKET, RANGING OR CONSOLIDATION. NOW OF COURSE ON LOWER TIME FRAMES
IT WILL APPEAR DIFFERENT. I USE THE DAILY TIME FRAME AS MY 'ANCHOR CHART'.
THIS MEANS THAT I TRADE IN THE DIRECTION OF THE PREVAILING TREND OR MOVEMENT
OF THE DAILY TIME FRAME, ENTERING INTO A TRADE ON THE 4HR OR 1H CHART.
I FIND USING HEIKIN ASHI CANDLES GREATLY AIDS ME IN IDENTIFYING POTENTIAL
PATTERNS AT A GLANCE. IT ALSO HELPS CLARIFY TREND AND PULL BACKS.
ANY QUESTIONS, PLEASE DON'T HESITATE TO MESSAGE ME!