Putting short-term and long-term charts in perspective

 

 

Did you ever encounter different views on a different time-frames? Showing you a different picture. What to choose for trading? What strategy? That is where your sense of trend direction kicks in. What do we have looking at the Oil charts now?

Looking at the monthly chart above we can see that the instrument has been rejected by the strong long-term falling trendline 3.500 level and we are seeing a pullback into the strong 3.251 level.

For some traders which are not using the top-down trading analysis, the problem is arising when they look at the weekly chart and they are intrigued by the latest bounce of the 3.3100 level and they see this as an opportunity to go long for another swing higher into the 3.5000 level and yet the instrument is getting ready for a short setup.

 

A Daily chart is revealing the possible two swings to the upside or to the downside. A daily close below the 3.3000 level is required for a downside continuation into the strong 3.250 resistance for a continuation into the 3.150 level. A daily close above the 3.350 level would lead to a retest of 3.450 level

 

 

The main conclusion of this technical analysis insight is that in the medium-term you have both long and short trade opportunity equally.

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