In the last two weeks I spent a lot of time analysing the charts of DAX, Cable and Oil on timeframes from Weekly all the way down to 5M. During this process, I removed some indicators, added some things and found that I made notes in a way I had not done before. By doing this I effectively came up with a new default chart setting so to speak. That hadn’t actually been the point of the exercise, but that’s what happened.
I added the 200 simple moving average (the fat yellow line on the chart) – see my comments about how Bloomberg users default to that. The 10, 20 and 100 EMA’s are still there. I removed the MACD and Stochastics indicators, because I was not using them a lot plus I never really felt that comfortable with them. And I have started to draw a lot more on the chart – chart patterns, trendlines, levels and some words here and there. The commentary might be a bit different on each timeframe – this helps me to pay attention at the right moment. I have also made notes on when price movements were triggered by specific events such as FOMC Minutes or the suprising rate cut from the People’s Bank of China (PBOC) on Friday. This should help me to become better at reading fundamentals and technicals together (see rule 11 of Denis Gartman ).
Below I have posted examples of each timeframe for Cable right now so that you get my drift. All the charts are made using the MT4 platform rather than FXCM “Trading Station” platform – though the latter is the one to check for pivot lines.