Are you entering based only on short-term signals? How to target resistance-turned-support using daily charts
In FX and CFD trading, many people enter by looking at short-term charts such as 5-minute and 15-minute charts. Of course, short-term charts are important for determining actual entry timing.However, if you only look at short-term charts,
“It seemed like it would go up, but it dropped right away.”
“I thought it broke out, but it was a fakeout.”
“I’ve entered many times, but there was no clear sense of direction in the end.”
These kinds of things tend to happen.
What becomes important then ischecking the daily chart.
The daily chart is not just a larger time frame.
It serves as a very important criterion to determine whether there is a directional sense in the day's market, whether there is volatility, and whether price has moved beyond key levels.
What matters most on the daily chart is the “close”
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