Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
The Importance of Getting the Bigger Picture

The Importance of Getting the Bigger Picture

Richard Krivo, Trading Instructor


Student's Comment:

In the two hour chart below I would try to enter the market at 1.3500 and make a stop position at 1.3450.

Coach’s Response:

Based on only this segment of the posted 2 hour chart, you have the right idea.However, before we make any trade we must consult the Daily chart to determine the overriding direction in which the pair has been trading.Take a look at the Daily chart below and we can see the trend has been to the downside since around the first of December. Based on this we would only want to be looking for opportunities to short the pair. In this instance on this example pair we would wait for the pair to complete its retracement to the upside and stall. Then, when it begins its move back in the direction of the dominant trend, we would short the pair with a stop above the highest level of the retracement.Also, on the second chart I have highlighted the section on the Daily chart that shows the same area on the entire 2 hour chart that was posted. By looking at those two charts we can see the inherent danger in not getting the bigger picture by looking at a Daily chart.

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