How to Derive an Intraday Forex Signal from the 15min Chart

Intraday Forex Signals

Intraday forex signals are designed for traders that have the ability to be next to their computer through out the European and US sessions, which are deemed as the most active sessions in the Foreign Exchange market (forex). While our forex trade alerts focus on daily/weekly/monthly chart, which contain the intraday ‘noise’ within the trade alert (stop, take profit and risk ratio), intraday signals require a larger attention.

OUR FX SIGNALS

Learn more about our forex signals and our trades performance, dating back to 2014.

As intraday entries in the market are often immediate there may be little time for the trader to act when the trade alert is issued, which means that in most scenarios the entry will be missed. In our intraday forex alerts we focus on the 4hr charts, which do allow the trader some time to assess the strategy we provide. Nevertheless there are traders that are more comfortable trading on the 15min charts and even 5min charts.

Such traders are uncomfortable holding onto the trade for a long period of time in fear of the market reversing against their trades, When the market is held in a tight range these traders will aim to profit anywhere between 5 pips to 20 pips per trade. The logic is to have multiple trades throughout the trading day that will eventually accumulate into a decent profit while maintaining a relatively low risk via a tight protective stop loss order.

The Intraday Trading Psychology

We are less fond of such techniques as the psychological pressure is immense, especially after encountering consecutive losses that in most scenarios lead to the forex trader taking upon himself or herself greater risks by raising the leverage in order to ‘reclaim’ the lost capital from the market. When trader attempts to regain his or her lost funds from unsuccessful trades the rational, healthy thinking is erased entirely. In most cases this leads to severe losses that are often beyond ‘repair.’

After highlighting the pros and cons of intraday trading in the Forex market we would like to show you how to setup your trade based on the 15min chart using price action. The setup is not limited to our example and may be used in any financial instrument of your choice. We will refrain from using technical indicators and lay our analysis on the current market price rather than pulling historical data with a classic ‘before’ and ‘after.’

GBPUSD 15min Intraday Signal

We have selected GBPUSD for our intraday 15min trade setup. At first glance the chart may appear confusing, lacking a distinct market trend.

GBPUSD 15min Chart Part I

Please click on the chart to enlarge:

GBPUSD 15min chart part 1, 02/07/15

GBPUSD 15min chart part 1, 02/07/15

In the first part we must outline the support and resistance levels. These price levels are essential as they are often used to determine the location of stop loss orders, take profit order and entry orders such as buy stop or sell limit for example. This will also provide us with a better insight to the price range of GBPUSD. Although there are technical indicators that calculate support and resistance levels automatically we prefer carrying our technical analysis manually.

GBPUSD 15min Chart Part II

Please click on the chart to enlarge:

GBPUSD 15min chart part 2, 02/07/15

GBPUSD 15min chart part 2, 02/07/15

The resistance level is noted at 1.5621, support at 1.5590. We can easily note the price is held in a tight range in the 15min chart. The resistance level has been tested multiple times, which could very well mean a break above the resistance is likely to trigger further buying in GBPUSD. Just drawing the support and resistance is insufficient to provide a 15min signal from the chart. We therefore deepen our analysis.

GBPUSD 15min Chart Part III

Please click on the chart to enlarge:

GBPUSD 15min chart part 3, 02/07/15

GBPUSD 15min chart part 3, 02/07/15

The orange lines are also considered as support and resistance levels that align into reversed Head-And-Shoulders (H&S). Although there has been a false breakout of the support level (lower orange line) it has been re-tested by the market, which is why it is considered as a firm support. The upper resistance (in orange) concretes the resistance at 1,5621, that affirms the possibility of further gains upon a firm break above. Based on the analysis we presented so far we can rule out a short trade in GBPUSD.

GBPUSD 15min Chart Part IV

Please click on the chart to enlarge:

GBPUSD 15min chart part 4, 02/07/15

The blue lines represent the next resistance levels should a breakout occur. These levels are used to set the take profit order for the long trade. The initial target would be 1.5638, the second target would be 1.5665. Upon a break above 1,5621, the resistance turns into a support level, which is why the protective stop loss order will be layered beneath. 1,5621.

GBPUSD 15min Chart Part V

Please click on the chart to enlarge:

GBPUSD_15min_chart_part_V_2_July_2015

The yellow region marks the breakout that is required to consider a long trade in GBPUSD. The purple region is a lower entry that may be provided if the price retraces to 1.5590 and does not close below.  There are therefore 2 possible entries to long GBPUSD and none that suggest a short trade. If GBPUSD does break below 1.5590 and closes below, new analysis must be carried to assess the trend of GBPUSD.

This is how we derive a rather simple but effective signal from the 15min chart. To carry such analysis requires experience regardless of its simplicity. You are welcome to review our intraday forex trading strategies that are carried on the 4hr charts. We hope you found this intraday trade setup for GBPUSD useful. We will upload a new GBPUSD 15min chart later on today in this page.

UPDATE: GBPUSD 15min Chart

Please click on the chart to enlarge:

GBPUSD current 15min chart, 02/07/15

GBPUSD current 15min chart, 02/07/15

An entry was not provided at the highlighted areas(purple and yellow). The market paid no attention to the support at 1.5590 but the lower support (in orange) remained firm a long with 1.5621. A entry was provided as the market re-tested the lower orange line (highlighted in green) but we must highlight this was as a result of the Non-Farm Payrolls (NFP) along with the break above 1.5621, which reached our initial target at 1.5638. This is how you may conduct your own analysis on the 15min chart. You may review our performance on longer time frames in the top menu.

The Time Frames

By trading via the 15min time frames the trade requires constant monitoring by the trader. At ddmarkets we prefer using the daily, weekly, monthly charts to derive the trade alerts from the Forex market as it is not as demanding as intraday time frames. If you are relatively new to trading we suggest refraining from volatile currency pairs such as GBPJPY and CADCHF and perform the analysis on the majors (EURUSD, GBPUSD etc.).

  • TRADE ALERTS

  • INTRADAY STRATEGIES

  • TRACK RECORD

We provide market research and trade alerts to online traders across the globe

  • TRADE ALERTS

  • STRATEGIES

[rev_slider alias=”mobe65″]
We provide market research and trade alerts to online traders across the globe