Daily forex chart analysis isn’t only for the traders who have a limited amount of time to look at their charts. Savvy day traders can make some really good use out of analyzing larger timeframes in order to get a better handle on the possible price action for the current day’s trading action.
Once believed to be a long term trader’s strategy, daily forex chart analysis has become extremely commonplace with swing traders. Looking to capitalize on a two to three day move, swing traders will often analyze daily candles and bars to identify trading opportunities.
Even day traders, who often scalp using 5 and 15 minute bars, will give a close examination of the daily trend prior to beginning their trading sessions. If a scalper can analyze a longer term chart and recognize an overall downtrend, they may want to consider taking only short trades during the session. Many successful day traders have stated that they must first have a daily bias for the overall trend, prior to trading off the smaller charts.
Another group that regularly reaps the benefits of daily forex chart analysis is traders who have regular full-time jobs. These traders only have a few hours in the evening time to peruse their charts in order to find some developing opportunities. All they really need is to isolate a daily candle set-up for the following day, and set their order triggers.
Using daily forex chart analysis does require some practice, however. As with anything else in the world of forex, experience and patience are critical. Having a trading strategy that gives good entry and exit signals doesn’t hurt, either. So many people start their trading without a solid forex system that it really is no wonder why 95% of all market participants lose money. There will never be a way to make money trading without a profitable trading strategy.
