Most people think the Daily (D1) time frame is just for swing traders (traders who hold positions for a few days to a week). But that is not the case. The Daily candle can absolutely tell us about the trend at least the next day. And that is important information for day traders.

Unlike traders often think, D1 is not a long time frame. Obviously, it's longer than the real M15 or M15 frame. But you know what, but such a short time frame often gives inaccurate information, the noise is relatively high and it is difficult to predict what the market will be up to. Therefore, trading on the D1 framework will remove those limitations, giving you a better view, clear and accurate.

HOW TO TRADING FRAME D1

Place pending orders, set stop loss and full take profit and shutdown, go back to the chart the next day.

Take the time to check all 15 currency pairs and often find lots of opportunities, without one pair, the other, but not every day is not. Of course, sometimes during the day we also turn on the charts and watch a few times to track the situation.

Reading D1 candles takes knowledge and experience, but if you don't have one, it's very simple, you just focus on a few special and strongest signals (eg pinbar, engulfing, ... for example). That's how the win rate is usually very good.

All we need are familiar Bollinger Bands candles and tools.

Sometimes a candlestick can tell us where tomorrow's price is going, sometimes even a few days later.

Below is the illustration:


As we can see, the second candle will give us information that the price will decline during tomorrow's session. Why so?

Obviously, the market is in a downtrend, and a downtrend has been formed. Although candle number 1 is a bullish candle, its upper tail is quite long, we guess the sellers are in command. Therefore, if the market forms a bearish candle on the next day (candle number 2), it is a signal that the sellers are officially controlling the market and the downtrend will continue for a few days, or At least there is a high chance that tomorrow will drop further.

So, according to this setup, when you see a pattern with candle number 1 and candle number 2 like this, you will place a Sell stop order at the bottom of the second candle. equal to or greater than the stop loss depending on your risk management. Just simple as that.

That is an example to describe how to predict where the price will go tomorrow. Therefore, the order is only maintained during the day, not through the second day.

Another example:


The price is in a downtrend. Candle 1 is testing the middle border of Bollinger Bands. The upper band gives us the information that the downtrend is very strong and does not indicate a signal of buyers. However, we should wait for the signal of the next day's candle (candle number 2). If the second candle is a bearish candle, yes, the sellers still control the market even though the number 1 is increasing.

Indeed, tree 2 is a reduced tree. Place a sell stop order at the bottom of the 2 trees, the stop loss is to keep the real body, take profit with the stop loss (because tree 2 is a bit long).

Obviously, the next day, the price still decreased and hit the correct take profit.

Now for the third example, but this time one trading example failed due to the false signal.


Trees 1 and 2 form a strong signal, indicating that the price will drop the next day. The reason: tree 1 has broken out of the upper Bollinger Bands, and tree 2 confirms that the price has plummeted. Then I will place a sell stop at the bottom of kilometer 2. Eat!

The number 3 also tested the lower boundary of the Bollinger Bands, but the number 4 did not increase as much as expected, it has not shown the strength of the buyer, if entering right here, it will be upturned. But until kilometer 5, this is the real candle to look for, showing a strong buying force. Enter the order at kilometer 5. Eat!

While the market is still in an uptrend, candle number 6 tested the upper boundary of the Bollinger Bands. But, we do not consider entering an order here for two reasons:
  • Milestone 5 was too strong in the past, the current buyers are very strong, maybe partly slowing down, but will soon control the market.
  • Candle number 7 cannot confirm for number 6, tree 7 must have a bearish signal for this setup to be valid.