Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
I come back again on the basic strategy of looking to two time frames on the same chart.
While on this chart we are looking to daily and weekly (blue boxes) bars, it is of course also possible to trade this strategy intraday, let’s say hourly and 4 or 5 hour bars (boxes).
In this strategy we buy when the close is above the previous weekly high (blue box), which will color the daily bars green and we sell when the close is below the previous weekly low, which will color the bars red.
Doing this on a daily/weekly basis I advice to use at least 100 pips stop, in case you like to put in a stop, and use minimum leverage.
All major currencies have big volatility these days which pays off in the EUR/USD with just two trades since November 2008.
It’s clear that trading a number of currency pairs this way will most of the time spread the risk as well.
Of course you can use an extra indicator to confirm the buy or sell signal, like RSI crossing the 50 level, MACD and other short term indicators.
Only a close this week above the previous weekly high (1.3475) will produce a buy signal and will change the trend otherwise we stay short since 1.3905.
