There is not much going on at the moment. I just thought I would have a look at the different time frames on the AUD/USD. This is the most common question I am asked without doubt. What time frame do I use? I am sure most people expect me to say that I only use the 5 minute chart. The reality of Forex trading is that I use the same time frames for trading everything from stocks, commodities, forex and market indices. The weekly, daily, four hourly and one hourly. Each chart has it own benefit as I will show below.
The arrows are in the same place between the different time frames so you can see how the different charts give me different information.
I start with the weekly chart. The top blue arrow marks the second down leg for this currency pair. That is my short entry for this down trend. The two lower blue arrows are just directional markers. All three arrows must be pointing in the same direction.
Then I confirm the entry on the daily chart.
If I want a closer look I go to the 4hr chart. The bottom arrow in the chart above is the top arrow in the chart below.
Even down the the hourly chart. The bottom arrow on the chart above is the arrow on the chart below. If I look at the four hourly and one hourly charts combined, I might decide to add on that point for example or I might decide to just hold my open short positions that I already have.
It looks like this pair still has further downside to go. Lets see how it unfolds.
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