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Top down Analysis in Forex. Weekly to h4 . How to draw top magic levels from higher to lower time frames.

Abstract financial graph with up trend line candlestick chart in stock market on blue colour background

How to trade momentum in Trading Currencies

Hi, Readers ! Last time I updated my chart with two classic examples of Touch Trades . Now I’m hereby want to show you method that will completely change the way you trade. Exactly, I still wonder why stairing at charts for hours don’t bring in the results.

Answer being the Approach. Approach to levels & emotions that you bring in with trading mechanical systems or Intraday Scalping. Somehow, they don’t work. Not work for me, atleast !

Let’s not waste more time & get back to the real motive of putting this blogpost. I am posting the Gbp/nzd chart below, which tell you the real story behind “Trading Levels”. Levels that can be traded from higher to lower time frames. Price do tend to give us clues before approaching such levels and its our responsibility to check the weekly charts once after the close of Trading week.

Points you need to follow here are :-

Strong Weekly momentum Candle that goes through the previous Resistance with strong push.

Failed to carry the momentum & then after few weeks we saw a break below & then price try to get back above the low & rejected and collapse.

Price Return to that level but with the cautious approach.

Look down the DAily & H4 Chart to see the reason.

Price does compressed to the level

Take a look at the Daily & h4 Chart below. This charts give us clues why we are quite sure of the rejection from that level we market on weekly Chart.

Only thing you must keep in mind is to set your stops & see above if there is any area where you can put your stops & Set the targets to the low levels of rejection. It could be Rally base rally on h4 chart to take the profits.

I’ve marked those zones on the chart which can help you take decision to set your stops and profit targets

Support Resistance Flips are most common way to trap Retail Traders

We can clearly see the h4 chart in which I’ve market the support/resistance flip before approaching to that weekly zone. One more thing to notice is that prior to visit that flip there was strong sell-off which take carries price to recent lows & then price start with little compression to approach that Area. again

Price Visit the area after the flip but there was still room for rise & that is exactly what happened when price visit the area again. but that approach was unable to push the price through the resistance and price stalls near those levels and I took the entry just around that S/R flip & put the stops just above the h1 supply & still in the trade.

Price Does Everything here.

STrong Sell-off followed by S/R Flip.

visit the Area of importance & clear the demand again & then revisit the area and got rejected.

Update on 08 september 2021

I was just going through the charts for weekly setups and found out the recent Price Action in USD/chf Chart. Price is very hesitate to go pass 0.9900 and every time it goes pass the line, steep fall was seen & this time its no different but this time I expect price to be bit more aggressive to 0.9950 level.

Chart speak louder than words & this usd/chf Chart screaming for sell-off

Sorry for not using the regular MT4 platform as my platform is going through upgrade and don’t have access to the platform.

I’ve market the zone below as demand which for me is still a fakeout of the demand and if this area is not tested again , then I would see only one area of concern, that is 0.9950.

I would like to make you feel comfortable in coming weeks and months by being more eleborative & explain things on charts that will help you trade naked charts & levels & I can promise you that you won’t be using any indicators or any other mechanical systems in trading at all.

You must take not of few things :-

Every Price Action is reaction of previous price patterns.

Price don’t randomly fake Demand & supply zones

If you see an area which is protected earlier with wicks & then engulfed with force, then You must look to see the areas where you can enter again. It could be level above the recent zone or small base followed by drop.

Price Usually compressed to those zones & pick every demand created there on & finally fall is very strong and you need to be proactive in setting targets and trailing entries.

What do you think?

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