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Part III

Wed, Jun 14 2006, 16:03 GMT
by Dave Floyd

Aspen Trading Group


More FX research & analysis from Aspen Trading

Complete daily analysis on all the major FX pairs is available via subscription.
In the previous two installments of this ongoing series of FX Trading Basics I outlined the methods I use for determining the trend. In today’s installment I want to discuss, how I combine multiple time frame analysis and stochastics in identifying high probability set-ups versus low probability set-ups.

First, some bullet points to outline my thoughts:

1. Higher time frames, generally, but not always, take precedent over lower time frames.
2. Stochastics, for me, are a filtering mechanism; not a timing mechanism. (...)

Aspen Trading Group  | 19699 Mountaineer Way Suite 108 Bend, OR 97702
http://www.aspentrading.com | dave@aspentrading.com

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