The Daily And Weekly Charts

Multiple time frame analysis is a key part of my trading from the large time frames right down to the small ones. In this article I share a recent trade where the daily supply lined up with the weekly which increased the probability of the trade working out and price did indeed fall from it as expected.

Daily and Weekly Analysis

The daily chart below shows a nice looking supply with a tight base, a large candle leaving the level and a huge drop in price. I’ve had this level marked up for a long time and price finally returned to it. The weekly picture also looks good with a large red weekly candle shown in the same place. This adds confluence to shorts from this level. Price also arrived with pure green candles which I also like to see for profit potential.

2014-04-10 aj Short d1

2014-04-10 aj Short w1

H1

Looking to the H1 chart we see a QM formation from with daily supply with price engulfing the nearest demand level indicating that it wants to drop further. When price returned back up to the level it was time to look for an entry.

2014-04-10 aj Short h1 v01

2014-04-10 aj Short h1 v02

Entry

Price rallied strongly into the H1 supply then shortly engulfed the nearest 5m demand. I set a limit for the 5m supply source of the engulf and then waited.

2014-04-10 aj Short m5

Exit

Whilst the view from the daily looks like there is lots of room for price to fall, I still like to wait for price to show me what it actually intends to do. When price hit the next H1 demand level, it quickly engulfed the nearest supply indicating that it was likely to travel much higher. This was a good place to exit the trade.

2014-04-10 aj Short m5 v03

I hope you found this useful

Happy Trading

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