We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.79% 🇳🇿NZD: 0.68% 🇬🇧GBP: 0.46% 🇨🇦CAD: 0.17% 🇨🇭CHF: 0.07% 🇯🇵JPY: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UMZm9sOyoN
  • GBPAUD down 25 big figures since April 2...will today's EU/UK briefing by Michel Barnier (12:00 BST) halt or accelerate the sell-off? #gbpaud #sterling #euuktalks https://t.co/QCTg3VugSj
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.17% France 40: 1.08% Wall Street: 0.92% US 500: 0.80% FTSE 100: 0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MwxVWpqxb3
  • EU's Barnier scheduled to speak at 1200BST following EU-UK trade talks
  • The #Dow Jones, #Nasdaq and S&P 500 have continued to melt higher in recent days even as bullish catalysts seem to sputter out. Get your #equities market update from @PeterHanksFX here: https://t.co/6QGkvWJ20E https://t.co/3ysgLGSUIJ
  • Heads Up:🇮🇳 Monetary Policy Meeting Minutes due at 05:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 76.2 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Coincident Index Prel Actual: 81.5 Expected: 90.3 Previous: 88.8 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Leading Economic Index Prel Actual: 72.6 Expected: 84.5 Previous: 85.1 https://www.dailyfx.com/economic-calendar#2020-06-05
  • 🇯🇵 Coincident Index Prel Actual: 81.5 Expected: 90.3 Previous: 90.2 https://www.dailyfx.com/economic-calendar#2020-06-05
Using Longer Time Frame Charts

Using Longer Time Frame Charts

2009-11-16 23:02:00
Richard Krivo, Trading Instructor
Share:

Instructor's Response:

You are correct.  Based on this 5 minute chart, the pair is in an uptrend and those would be valid support and resistance lines.

That being said, we would advise using longer time frame charts...such as the Daily, 4 hour or a 1 hour chart for the trading analysis. A 5 minute chart, such as the one posted, will produce some very random moves that can and will generate many false entry signals for the trader.

The longer time frames will be much less random and the smoother movement cycles will be more readily traded as a result.

chart 11 16 09

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.