Implications of different timeframe on your trade – illustration with AUDUSD
In my trade planning, I like to look at different timeframe and what each timeframe suggests. When using price action, switching across different timeframe does not change the analysis. In fact, by going to higher timeframe, you are able to see different price levels but essentially the same conclusion.
Let’s answer the question if currently AUDUSD H4 shows WRMB (WR many boxes).
For WRMB, there must be 2 or more H4 boxes about the same high/low. In AUDUSD, we might have a WRMB if price closes up a little above previous 2 H4 boxes high and then closes back below. So AUDUS at this moment does not show WRMB
Big Picture Planning
Support resistance in D1 chart
The 1234 pattern mapping currently in AUDUSD
Shorting on 1234 WR is not wrong; however, we have this very strong support line identified in weekly chart not broken. So unless this is broken, AUDUSD is probably going to assume supported
What I’m looking at AUDUSD
I’m only interested in selling AUDUSD on condition that AUDUSD D1 closes the red line that I’ve drawn (strong weekly support).
Few things must happen:
1. There must be a bearish expansion below the red line
2. Price must map a 1234 and show a trigger