Section One - Daily charts

In this section we start with several worked examples using the daily timeframe from the spot forex market. All the examples in this section are taken using the NinjaTrader platform.

When using the daily timeframe for any analysis, it is always important to remember two things.

First volume can and is seasonal. Second, when markets are having a public holiday, this too is reflected in the volume on the day. Typically on the daily charts we tend to see volumes decline in the summer months, then generally rise again into the final quarter, before falling once more as we come to the end of the year with many institutions closing out their books early in December, with volume remaining low until the second week in January.

The second issue is public holidays, and it is very easy to forget this when scanning a daily chart, with low volume bars then being misinterpreted.