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My planning for USDSGD in multiple time frame charts

Emphasis: This is my planning. My planning may not be yours. However I want to share the way I put this together to justify my subsequent action. You have to decide if you want to trade, how much you want to trade, how much you can lose, how you intend to enter and where you intend your SL and TP to be.

 

4 charts of USDSGD. Click on link to open full size image in new tab.

Multiple time frame charts of USDSGD

Multiple time frame charts of USDSGD

 

Chart #1, left top, daily time frame

Chart #1 shows to potential setups. A potential double top where the second top has already appeared. A potential bullish 1-2-3-4 where ‘second top’ is probably point 3.

Both setups need not be exclusive. A double top could be shorted first. It could be a big move that goes beyond its neckline. Or it could be a both that stops at neckline just in time for point 4 turning point to show up. So something like short first then long. Caution has to be exercised. Point 4 if any could be higher than point 2 or lower. This snapshot may be valid now but will certainly change. So any plan for now will certainly change as we go along.

 

Chart #2, left bottom, H4 time frame

Second top circled in blue could do a Head and Shoulders pattern. At this moment, it certainly looks symmetrical as today’s high nearly coincides with potential left shoulder. If this is true, L is expected to be resistance, right about top of orange zone. So look for price action there to verify if any. Bottom of orange zone may be some kind of support, may be not.

If you are using Axi’s server 05 like me, the day open today is very near to bottom of orange zone. So if price crosses into red any time today, it is going to break the orange zone about the same time. Take that as a confluence signal.

 

Chart #3, right top, H1 time frame

Our potential right shoulder in H1 reveals also a potential 1-2-3-4 short. How nice they all like to fit together.

 

Chart #4, right bottom, h4 time frame with box indicator

So far analysis on charts 1-3 all suggest to go short for now. Box indicator agrees since last Friday was a bearish expansion day with negative close while yesterday’s price action was merely a retracement in that context.

 

Summary

Last Friday close shows a bearish expansion in USDSGD. Lined up in daily, H4, and H1 context, you can see why. If a short signal appears, it is following Double Top logic. However, a bullish 1-2-3-4 could appear later on daily time frame. So we are going to be careful about where to close our short because then once 1-2-3-4 appears, there may be a plan to go into a swing long mode.

4Shares

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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