How to trade forex using daily charts


3 Tips For Trading a Daily Chart

  1. Find the Trend The first tip for trading a daily chart is finding the trend! …
  2. Remain Patient Why go through all the pains of finding a trend, and having a market trading plan if you aren’t going to use it? …
  3. Use Larger Stops and Less Leverage

How to analyse forex trading charts?

  • What Are Chart Patterns?
  • Types of Forex Chart Patterns Continuation Chart Patterns Reversal Chart Patterns Neutral Chart Patterns
  • How to Use Chart Patterns for Trading
  • Disadvantages of Trading with Chart Patterns
  • Tips for Trading Chart Patterns Effectively

What is the Best Forex trading strategy?

What is the most profitable forex strategy?

  • Profitability – Profitable Forex Trading Strategies. So, we know that we just said that there is no Holy Grail in Forex trading. …
  • Simple is the Way to Go – profitable strategy forex. The best forex strategy for consistent profits, for any trader, will be a simple profitable forex strategy.
  • Scalping. …
  • Day Trading. …
  • Swing Trading. …
  • Choose Your Battle Axe. …

How to trade Forex daily?

You must be aware of the risks of investing in forex and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose.

How do I read a forex chart?

  • Open: the price at the start of a period.
  • High: the highest price traded during a period.
  • Low: the lowest price traded during a period.
  • Close: the price at the end of a period.

What is forex daily chart?

The forex daily chart provides a currency trader with an indispensable overall market view from which they can create a long side or short side directional bias. This is valuable information that will help you stay on the right side of the market.

What is daily chart analysis?

Your daily chart analysis with allow you to gauge whether there is more buying or selling pressure in the market, and also help you avoid buying into major resistance zones and selling into major support zones. You should analyze the last few months of price action on the daily timeframe and ask relevant questions about the current market conditions such as:

Why do traders trade short term?

One of the reasons for this is that these traders believe that by trading the lower timeframes they have more opportunities available to them to trade, and thus they can generate more profit in the long run.

What do professional traders want to know?

Most professional traders will want to know what is happening on the daily timeframe regardless of what their trading timeframe is. Whether you are a day trader or swing trader, you would want to try to trade in the direction of the momentum as seen on the daily chart. If you only rely on one time frame to trade, your trading timeframe, …

What does a swing trader look for in a reversal candlestick pattern?

He may look for a strong price rejection in the form of a reversal candlestick pattern or a strong breakout thru these key higher time frame levels. He can then quickly make an assessment and act accordingly. With this approach, the trader is taking into consideration both the price action on the longer timeframe daily chart along with the price action on the shorter term 240 minute chart. This combination will serve to provide higher probability trade setups for this swing trader.

What is multi time frame analysis?

A multiple time frame approach can help a trader in trade selection and in filtering out potentially bad trades. One of the most important timeframes to consider in a multi time frame analysis is the daily chart. This is where the major participants do most of their analysis and as such where you will find some of the best Support and Resistance levels to trade off of.

How to improve trading overnight?

One of the simplest things that a trader can do to improve their trading almost overnight, is by switching to a higher timeframe. If you are trading based on the 15 minute, 30 minute, or 60 minute chart, try to move up to the 240 minute, 480 minute or daily chart for eod trading (end of day trading).

What is daily chart forex?

This Daily Chart Forex Trading Strategy is a very simple Forex trading strategy that beginner Forex traders will find easy to use. If you think that trading the daily chart fits your lifestyle better than intra-day trading, take this trading strategy for a spin

How many pips can you get trading forex?

This is one of those Forex trading strategies that has the potential to give you over 100 pi ps a day due to it being a larger time frame trading system

What happens in between a full blown trend change?

In between a full blown trend change, we will get corrective moves and that is what this simple daily chart trading strategy wants to capitalize on. We want to see price meet up with one of our Fibonacci levels and confirm with our stochastic oscillator.

Can you add videos to your watch history?

Videos you watch may be added to the TV’s watch history and influence TV recommendations. To avoid this, cancel and sign in to YouTube on your computer.

Is trading signal reliable?

The trading signals tend to be much more reliable as well.

The Best Way To Trade Forex Charts Daily

If you are interested in forex trading, but do not have much time to dedicate to it, then you might be interested in learning how to trade the daily charts.

Get Trading System

Find a trading system that works for you. A good place to start your research on or These are both well-known trading forums that offer an independent third party reviews of software programs and systems trading. Affiliate links are not allowed, even for the most part you’re getting unbiased opinions.

Use The 2-Period RSI

Use the 2-period RSI (relative strength indicator). The famous trader named Larry Connors is 10 years of statistical back-testing with these indicators and found that when it is below 10, there is a statistical edge that the market will move upward. Likewise, when the RSI is above 90, probably will move downward.

Use Everyday Weekly Charts

Use daily and weekly deadlines for trade s. Use the map to determine the weekly trend and day tickets for the input and output signals. In other words, look at your trading system, and if it points to “buy” signal on the weekly charts, and then look at daily charts and only take a buy signal.

Making It Work

Put it all together. When you buy signal on the weekly chart, then move to a daily scale. If you have a signal to buy there, look at the 2-period RSI. If his last low was below 10, take the signal, if not, just ignore it. If you have a sell signal on the weekly chart, look for sell signals on daily charts.

Find The Best Pairs

Select pairs. This trading system generally works well with the following forex pairs: EUR / USD, GBP / USD, USD / CHF, USD / JPY, AUD / USD, NZD / USD, EUR / JPY and GBP / JPY.

Trading Using Multiple Time Frames

Note: There are many forex trading systems with more than 1 time frame. Why? This is usually the exact time of entry to the trade “high probability” trade. Some systems, however, only trade in a time frame, such as living systems as they look for a wider and bigger moves in the currency markets.

What is the best indicator to use for daily trading?

The main focus for this is to avoid being taken out of the market prematurely. One indicator a trader can use for this is ATR (Average True Range). ATR can help you find the average movements for a pair for a given period of time. Once this value is found, you can use a multiple of ATR to go about setting the Risk/Reward level of your choosing.

How to find trend on daily chart?

One way to identify the trend is to look at half a year’s worth of price data, or roughly 180 periods, and then identify the swing highs and lows created by price action. While this number of periods can be moved up or down to your liking, having a reference will keep you from looking at too much price data which substantially increases the difficulty of finding the trend.

What is DailyFX?

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

How to remain patient in trading?

The easiest way to remain patient is to keep a trading journal and join a trading community. In my experience this allows you to hold yourself accountable for following your trading strategy. For instance if you are trading with CCI on a daily chart, such as the example below, your trading journal should only show two entries! If your report is showing something different, it is time to reevaluate your trading plan.

What to keep in mind when trading with moving averages?

One of the most relevant things to keep in mind when trading with moving averages is that they reveal a trend’s strength. The more the price comes to the average, the weaker the trend becomes. And, eventually, breaks it.

How many times should you trade a candlestick?

Because of that, the rule of a thumb implicates to trade only the first two times when the price tests the averages. But the price action during a candlestick’s formation is volatile and sometimes chaotic.

What does a bar chart show?

Bar and candlestick charts show both the opening and closing of a period, together with the price action in between. A line chart, instead, shows only a line that appears to have no meaning.

Why do we use line charts?

As mentioned earlier, line charts have one significant advantage and it is to filter the noise in the currency markets. By displaying only the closing price and ignoring the price action between the opening and closing prices, a line chart reflects the true market nature.

What is the rule of thumb for the moving average?

Moreover, the rule of thumb says that the higher the moving average, the stronger the support or resistance the price meets. Furthermore, the bigger the time frame, the stronger support or resistance gets.

When to use line chart instead of candlestick?

Therefore, instead of using candlestick charts, savvy traders use line charts and consider a relevant test only when the line chart touches the moving average.

Do line charts reveal price action?

One of the first things to consider is that line charts only reveal the relevant price action. Despite many considering them just too simple to be efficient, line charts work best precisely for this reason.

When do we have a trade setup?

Keep in mind this: We have a trade setup once price reaches the confluence zone. What we don’t have is a trade trigger but that is next.

What is a daily candlestick close?

If you think about a daily chart candlestick close, it encompasses the highs and lows of the trading day. It is a single structure that shows where control was during the day and ultimately, who won the battle.

Why do we use the histogram of the MACD?

We are using the histogram of the MACD to show us momentum. If you were to use a cross of the MACD and signal line, moves are long over.

Is there a best setting for forex?

A word about the settings, there are no best settings for a Forex strategy or any other market. Don’t waste your time looking for it.

Is it hard to see price movement during the day to capitalize?

It’s hard to see price movement during the day to capitalize on but you have to sit aside.

Do I need to wait for the breakout on a day trader?

For example, if I trade an hourly chart as a day trader and my trading strategy is a breakout, I would need to wait for the breakout of course…but also the close of the candlestick to confirm.

Why do people trade forex?

Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial market…

What is MACD in trading?

MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:


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