Dealing with Conflicting Signals
Student's Question: After looking at so many indicators and adding to that the different time intervals, I am a little confused. They all seem to give different entry points. How am I supposed to trade given these conflicting signals?
Instructor's Response:Good question...The dominant signal that a trader will take for the direction to trade the pair is from the Daily chart. Only trade pair with the strongest trend in either direction from the Daily chart. Once that determination is made, then go to a lower time frame chart, the 4 hour or the 1 hour, to fine tune the entry.What you are looking for on those lower time frame charts is the beginning of a "fresh move" back in the direction of the Daily trend. So once the lower time frame chart has completed a retracement, a move against the trend, we look for that new/fresh move in the direction of the Daily chart.It is called Multiple Time Frame Analysis and here is a link from the Instructor Trading Tips area of DailyFX with some additional information...
http://forexforums.dailyfx.com/dailyfx-course-instructor-trading-tips/23989-post-day-4.html
Also, if you have a live trading account with us, you can log into the Trading Course area of DailyFX+ view the four lessons that are there on Trend Trading.
You can log into the Trading Course as follows…
With your live Trading Station open click on the RESEARCH button in the menu bar at the top. Then click on TRADING COURSE and scroll down in the Subject area to Trend.
