Navigating conflicting signals

[Lifesong]

Hi Neal

Attached please find my 4H chart of EURUSD and what I want to know is the following:

With the latest price action it drop big time since posting todays earlier high just over 1.59 level indicating that bias could have shifted towards bearishness. The concern I have is that on the 4H chart I have an SK @ around 1.5775 and this seems to coincide with the shortterm upsloping trendline. Is this possibly an entry for a shortterm scalp to the upside with a view that the trendline will hold? The reason for my question is that on the one hand the overall trendlines are still pointing upwards, but TRSI shows bearish signals and it's not clear what to trust. I know the safe reaction is to stand aside and await confirmation of which direction to follow, but is this the norm when receiving conflicting signals from the TRSI, SK levels and trendlines?

Thank you in advance for sharing your views.

Happy pipping and keep your great charts coming!!

[FibMaster]

Hi Lifesong,

Excellent question!

You answer is in the form of a video here;
http://www.dailyforexcharts.com/charts/080703_eurUSD_tzine/080703_eurUSD_tzine.html

Also, for more specifics, be sure to watch the update for subscribers at http://www.dailyforexcharts.com today.

[ownshook]

Very indepth video Neal. Thanks.

[ownshook]

I want to clarify. In the example you used the daily milestones to trade the four hour. If trading 1 hour chart, would you take 4 hour milestones and apply that to a 1 hour time frame trade? Even going shorter, 1 hour milestones for 30, 15 minute charts?

[FibMaster]

Very indepth video Neal. Thanks.

You're welcome. In case anyone missed it, the latest video (not the same as the one above) is here;
http://tinyurl.com/587jn4

[FibMaster]

I want to clarify. In the example you used the daily milestones to trade the four hour. If trading 1 hour chart, would you take 4 hour milestones and apply that to a 1 hour time frame trade? Even going shorter, 1 hour milestones for 30, 15 minute charts?

Your examples are correct, but I would add that you should not limit yourself to just the next-higher time-frame.

It pays to keep an eye on time-frames that are even higher than the next one, even though they can take longer to play out.

[Lifesong]

Your examples are correct, but I would add that you should not limit yourself to just the next-higher time-frame.

It pays to keep an eye on time-frames that are even higher than the next one, even though they can take longer to play out.



Agree 100%, because in retrospect to my initial question it is obvious that I did not keep track of what was apparent on the daily as my focus was purely aimed at the 4H chart. In hindsight looking at the Daily chart it was clear as daylight that an SK was around 1.5636 to 1.5670 close to where the bounce occured.

Thanks for the great teachings Fibmaster and this lesson will serve me well in future!!!

Happy pipping!!!

[FibMaster]

Lifesong, we missed you in the live chat room yesterday.. I waited online for you to come in at your usual time. I hope all is well and you're trading up a storm!
http://www.dailyforexcharts.com/chat.html

[Lifesong]

Hi Neal

Looking at the AUDCAD daily chart there is an SK support @ 0.9670 that held previously on Jul 24th (see my attached chart). How long is an SK level valid and is it wise to trade that level more than once?

Thanks in advance for the feedback.

[FibMaster]

Hi Neal

Looking at the AUDCAD daily chart there is an SK support @ 0.9670 that held previously on Jul 24th (see my attached chart). How long is an SK level valid and is it wise to trade that level more than once?

Thanks in advance for the feedback.

Hi Lifesong,

A FibLevel is valid until it is taken out. I see a level in that area and another one at about 95.80 ... Both are great places to take profits and prepare for a bounce. If the higher one holds, it will look like a good trading range on the daily and 4-hour charts, long trades are possible for the short-term in that case.