This breaks down into several areas:
You can't ignore interest rates if you want to trade the bigger picture. When you hold a currency trade for more than a day, you'll notice something called rollover. Depending on the currencies involved and the direction of the trade, you may be paying a little bit of interest or earning a little bit of interest. For the most part, if a country is paying good interest, world traders are buying into the currency against weaker currencies, creating a trend.
See more on: Trading Interest Rate Differentials
This goes along with the above idea. Fundamentals are things like, employment, interest rates, CPI, and even politics. While trading the big picture you need to know what the fundamentals are for the currencies involved.
See more on: Fundamental Forex Trading
Technical analysis has so many methods. If you say technical analysis to one trader, they make thing moving averages, while another trader may think of MACD if you mention technical trading. When trading the big picture, you are looking for technical aspects to support your trade. If you want to buy a currency pair, you don't want it to be overbought technically. Your big picture trading should have some technical analysis that supports your decision. It helps with the timing, and helps you avoid getting in at a bad time. You may have the right idea overall, but having technical analysis in your favor can reduce your risk.
See more on: Forex Technical Analysis
One thing I love to do when I don't feel like I really have a grasp on what is happening with a currency pair for a day, is to step back and look at everything on the weekly charts. The bigger weekly charts can make a kneejerk move on the daily chart look trivial and give you a better feel for what you're looking at. This helps reduce second guessing.
With these items in mind, you can make strong trading decisions that support positions that you're holding. You should never be making trades just to make them. You should be able to explain them to a third party if you had to. If you follow this rule, it will help you avoid making an "I'm bored" trade. Real trading, especially big picture trading, can be boring and slow. Many traders are brought in and told to trade fast and leveraged, and that is why there are so many failed forex traders.
Big picture trading is about taking everything into account and making an informed decision. In my opinion it's one of the best trading methods. It's also one of the most difficult methods for traders to follow because it lacks excitement and fast payoff. Big picture trading is more about long term success and staying in the game.
Do you have a forex trading method that you prefer? Write to me at firstname.lastname@example.org and tell me about it.