I suspect that an awful lot of FX traders don’t drift far beyond the hourly charts when it comes to hunting for opportunities but even if you aren’t going to trade them it’s well worth taking a look at what’s out there on the longer time frames.As you can see by looking at the x-axis this is far from a short term chart – but what it does show is where there may be some major breakout points occuring. These types of setups can of course be traded but would require a very large stop loss due to the requirement of absorbing weekly levels of volatility – i.e. huge amounts.
This is the type of chart that would be worth keeping an eye on every few weeks because around the point of the breakout you may be able to establish a shorter term setup that deals in the same direction as the weekly.
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