Over the past few hours, the FTSE has experienced a small sell-off. Nothing dramatic, and certainly not enough to suggest the long-term trend is in danger. But moments like this highlight why charting tools are essential for managing risk, whether you’re a short-term trader or a long-term investor.
Reading the 4-Hour Chart
Looking at the 4-hour timeframe, the Ichimoku cloud has been a reliable support since July. Right now, the base of the cloud sits around 9150, providing a clear short-term reference point. If prices dip toward this level, traders can use it as a guide for setting stops or reassessing positions.
Key Support Levels
Charts allow us to identify where the market has repeatedly found support in the past. These levels often become key reference points for risk management:
• 8911 – former March high, retested in June, now acting as near-term support
• 8476 – major level tested multiple times in May and August
• 8044 & 7909 – deeper, longer-term support areas
The important lesson here: the more often a support or resistance level is tested, the stronger it tends to become. Think of them like fine wine — age and repeated testing increase their significance. 🍷
Long-Term Trend Still Intact
When we zoom out to the weekly and monthly charts, the trend is still pointing higher. Even if the market corrects back toward 8911 or 8476, the bigger picture suggests this would be a healthy correction, not a reversal.
What This Means for Risk Management
Using charts isn’t just about predicting where the market might go — it’s about defining your risk:
• Identify support and resistance levels where you would reassess your position
• Use indicators (like the Ichimoku cloud) to find natural “lines in the sand”
• Accept that corrections are part of an uptrend, but know your tolerance for risk
By combining short-term and long-term charts, you give yourself a roadmap. That roadmap doesn’t guarantee outcomes, but it does help you avoid being caught off guard.
⚠️ Disclaimer: This is not investment advice. Always assess your own risk and position size before making trading decisions.
Reading the 4-Hour Chart
Looking at the 4-hour timeframe, the Ichimoku cloud has been a reliable support since July. Right now, the base of the cloud sits around 9150, providing a clear short-term reference point. If prices dip toward this level, traders can use it as a guide for setting stops or reassessing positions.
Key Support Levels
Charts allow us to identify where the market has repeatedly found support in the past. These levels often become key reference points for risk management:
• 8911 – former March high, retested in June, now acting as near-term support
• 8476 – major level tested multiple times in May and August
• 8044 & 7909 – deeper, longer-term support areas
The important lesson here: the more often a support or resistance level is tested, the stronger it tends to become. Think of them like fine wine — age and repeated testing increase their significance. 🍷
Long-Term Trend Still Intact
When we zoom out to the weekly and monthly charts, the trend is still pointing higher. Even if the market corrects back toward 8911 or 8476, the bigger picture suggests this would be a healthy correction, not a reversal.
What This Means for Risk Management
Using charts isn’t just about predicting where the market might go — it’s about defining your risk:
• Identify support and resistance levels where you would reassess your position
• Use indicators (like the Ichimoku cloud) to find natural “lines in the sand”
• Accept that corrections are part of an uptrend, but know your tolerance for risk
By combining short-term and long-term charts, you give yourself a roadmap. That roadmap doesn’t guarantee outcomes, but it does help you avoid being caught off guard.
⚠️ Disclaimer: This is not investment advice. Always assess your own risk and position size before making trading decisions.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
technicalanalysts.com
technicalanalysts.com
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.