Inside technicals and chart patterns by 
It’s Friday and I am in half-day trading mode so I thought a nice educational updated would be perfect going into the weekend. I’m going to walk you through using an invalid chart pattern alert, two different intraday trends, and confirming Initial Trend readings on the your Autochartist alert.
The two patterns that have formed on the charts are setting up to entirely different trades, the only thing being the fact both are trending pattern alerts.
The 240 minute chart however is not heading in a mark down cycle so the pattern alert is not valid BUT the downtrend line of the pattern will be a level to watch for a potential breakout. In this way, even invalid patterns can be helpful.
So since I am looking at a potential break out through resistance on the 240 and a potential trend follow buy on the 30, these two time frames have more in common than it may look like at first glance.
One thing I need to caution you when looking at trending and non-trending markets is to be sure and confirm the “Initial Trend” reading with the current market cycle before assuming that the underlying market environment is a good match for the alert!
Again the 30 minute chart shows a weak reading on Initial Trend, no doubt partially correct because of the recent consolidation before the pullback. But when looking at the market cycle, the trend is a strong uptrend.
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Are these the research steps you use for each possible trade combo beofr placing a trade and is this research short term based/combinded with/on forexfactory calendar reports?
Ray, looking at multiple time frames before deciding which would present the best opportunity is a process I call “triage”. So looking at each chart sometimes will create combination trades and sometime there will have to be a decision made as to which better: better risk/reward, suitable for my account, which may more realistically trigger, which might have an economic data release to contend with, etc.