Never miss a story from Thomas Long

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Thomas Long

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Typically we see new traders open up a short-term chart like the 5-minute or 15-minute, place as many indicators as possible on that chart and wonder what they should do next.  We recommend taking a step back to get a good feel for the mood of the market and then to look for your trade.  What we mean by that is to first start with a daily chart with one year of trading to identify the direction of the trend.  If the market is trading between two similar price levels, then the market is range bound and we want to buy above support and sell below resistance.  If the market is in an uptrend, we want to buy the pullbacks off of the highs down to support.  If the market is in a downtrend, we want to sell the rallies up to a resistance level.  We would prefer that all new traders use the daily chart to both identify the trend and to find a trading opportunity.  However, there are many times when no trades are setting up on the daily chart.  So, at that time we recommend moving down to the 4-hour chart to find your trade, but always in the direction of the daily trend.  If there are no setups on the 4-hour chart, you can then move down to the hourly chart to find a trade, but still only in the direction of the daily trend.  This keeps you on the momentum side of the market and puts you in a position to be in on some of the big moves that the FX markets are known for.  Most likely, you will find that the best trades are found on the daily charts and as the time frame shortens, the trades become less reliable.  However, you will find many more trading opportunities on the hourly chart than on the daily chart.  But if you always trade with the trend on the daily chart, you increase your chance of success and should be able to find plenty of quality setups.