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Submit by Joy22 Time Frame 4H Pairs: all. Forex Indicators 21 EMA (applied to close).
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As competition for page views, viewer numbers, and attendance continues to heat up, very little in this life emphasis a slow and steady approach. But to the trader, in many cases, that is the best way to go about speculation in markets: Slow, steady, and consistent.
But being there as a trader, and getting there as a new speculator are completely different markets. And further, this is an approach that can be focused on longer-term moves , and swings. If you have a day job, or any other pre-existing commitments that limits your time on charts, this is an approach that can offer quite a few benefits. Most equity markets are open between 8 and 9 hours each day, and as such, the four-hour chart might take on less importance.
After all, a four-hour chart just shows two bars for each trading session, so traders might as well just look at the daily chart. But in the Forex market, the four-hour time frame takes on special importance. The market never closes, and traders are literally Trading the World. The four-hour candle represents half of each geographic trading session. Each of these sessions can take on markedly different tones, and that is where traders can look for potential opportunities.
Image taken from Trading the World. Traders can use the price movements and gyrations on these four-hour charts to analyze markets, and find potential pockets of opportunity. Watch for the close of each 4-hour candle that you can.
Traders can then take a ten-minute block of time upon the close of each of these four-hour candles to look for potential trade setups, while also using this as an opportunity to manage risk. If the trader is awake for four of the six four-hour candles that form each day that would mean that the trader would need approximately 40 minutes per day to analyze charts. If time permits, an additional minutes can be used at or around the daily close. The total time commitment required is minutes each day, for a total of minutes per week minutes is 4 hours.
Trends in markets can be easily graded and seen with price action… by simply looking for charts to make progressively higher-highs, and higher-lows in the case of an uptrend , and lower-lows, and lower-highs for downtrends. In the article Price Action, an Introduction we look at a way that traders can grade trends without the use of any indicator at all, using just past prices.
Traders want to look to trade in the direction of these trends; buying up-trends, and selling down-trends. Traders can use price action to appropriate their entries into these positions. Once again, traders want to look to efficiently buy up-trends when price is cheap, or near support. We looked at how traders can find this support in the article, Price Action Swings. Traders can look for additional confirmation of the entry by looking to the price action candles that form at or around those swings.
We talk about this a lot at DailyFX, and there is a reason for it: By adding a stop and limit, and letting the trade work — the trader eliminates the possibility of making a knee-jerk reaction that they may end up regretting.
It also enforces a favorable risk-reward ratio, and puts traders in the most promising spot to avoid the number one mistake that Forex traders make. Since traders are looking at their charts for each four-hour bar, they have built-in trade management for each position that they take on.
Traders can use the close of each four-hour candle as an opportunity to adjust stops particularly the break-even stop , or to take profits while also looking to trigger new positions. Traders can take this a step further by trailing their stop in an effort to lock in gains in the event that the trend gets especially built-in.
The 4 hour trading approach requires a solid psychological foundation to markets. Check out our Building Confidence in Trading g uide to learn more about the mindsets behind trading. This swing trading strategy uses a combination of moving averages, support and resistance, volatility and a few other tools to maximize profits from the trends in the Forex market.
At the same, the strategy aims to keep stop losses and drawdowns to a minimum. Although this strategy can work well on all timeframes, it is best to be used on the 4h timeframe, which makes it highly suitable for swing traders. In this strategy, the 4h chart is used as the base chart this is where we screen for potential places on the chart where trading signals may occur and the 1h timeframe as the signal chart, or the trade chart where we execute orders according to this strategy.
If you choose to use a different timeframe as the base chart remember that you go one timeframe lower for the signal chart so if 1h is the base chart then the 30m timeframe is the signal chart. The main cornerstones of this strategy are as follows: We need to have a trend. This strategy rests on trend behavior and without one it basically can not be used.
To determine if there is a trend or not we are going to use a set of two moving averages, out of which one is a 34 period and the other a 55 period MA.
You may notice that these numbers are part of the Fibonacci sequence. We can judge if a trend is worth trading or not by observing how the moving averages relate to price action. For this strategy feel free to experiment with different types of moving averages like simple, exponential and weighted.
For an uptrend, the trend should meet the following conditions: Price action is above the two moving averages. Price stays above the moving averages. The MAs are sloping upwards for most of the time as they follow the trend.
For a downtrend, the same applies just in the opposite direction: Price stays below the moving averages. The MAs are sloping downwards for most of the time as they trail behind the trend. Forex Trend Following System. Basically, the moving averages are a support zone during uptrends and a resistance zone in downtrends.
It is around and inside of this moving average zone that the best trading opportunities for this trend trading strategy are to be found. We are trying to profit on the swings in the direction of the trend. So, for this reason, we want to join the trend on the retracements.
There needs to be a trend on the 4h with the moving averages lined up as described earlier. We need to wait for a retracement to start and for the price to move towards the two moving averages. Once the retracement reaches the area around and between the moving averages we switch to the 1h timeframe to look for entries. There needs to be a retracement trendline counter the direction of the trend that has been touched at least 3 times as shown in the example below.
This will usually be a continuation chart pattern at the same time on the 4h chart like a triangle or a channel. On the 1h chart, wait for a breakout with a close of the retracement trendline in the direction of the larger trend on the 4h timeframe. Enter on the breakout once price closes past the trendline on 1h chart. Stop loss rules are explained below.
Place the ATR average true range indicator on the D1 chart. Add the spread to the stop loss for some more exotic currency pairs the spread can often be 15 or more pips which can make a big difference on the 1-hour timeframe in terms of when your stop loss will be triggered.
So, in total the stop loss, in this case, would be 32 pips. Here is how this strategy works: If at any point in time during the trade a counter-trend retracement trendline starts to form on the 1-hour chart then exit the trade. A counter-trend retracement trendline would be a trendline that is touched 3 times. Once this happens there is a higher probability that a new retracement or even a reversal has started.
Because this is a trend trading strategy we will use a trailing stop for exiting the trade.
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4H System is an forex tradin strategy based on the metatrader indicators: Ema, MACD and Parabolic Sar 4H Forex System - Forex Strategies - Forex Resources - Forex Trading-free forex trading . The basics of forex trading and how to develop your strategy Foundational knowledge to help you develop an edge in the market What's ahead for major FX pairs, Gold, Oil and more. Jun 09, · Nanningbob 4h trading system ver. Trading Systems.