DislikedWhen there is conflict between the 1hour and 4hour then the 4 hour is remains the main one. The 1hour must support the direction of the 4hour.Ignored
I listned to your audio on 1-Hr. confirmation.
1 In your audio, you are talking about the relationship between the 4-Hr. chart and 1-Hr. chart.
2.You are telling us the relationship between the "Round Top" (RT) signal and "Trend Continuation' (TC) signal in those charts.
3. Also, you are NOT talking about any other signals (or, any relationship between other signals) in those two charts.
(Phillip, this is important, please confirm this observation).
4. Let us stick to RT ONLY for this discussion here. We do not talk about 'Round Bottom' (RB) signal here.
3. Now, in the 4-Hr. chart. a RT signal is forming on the currnet bar.
4. After completion of this current bar, if it closes below the previous bar then there wiil be a RT signal to go short.
5. But, we do not know whether this current bar closes below the previous bar to form a RT signal to go short.
6. If the current bar closes higher than the previous bar, then it forms a TC signal to go long.
7. Now, at this juncture, we are sitting with a dialama.
8. The dialama is, whether the current bar closes lower than the previous bar to form a RT signal to go short OR whether this current bar closes higher than the previous bar to form a TC signal to go long.
9. Of course, we can wait until the completion of this current bar to make sure ourselves whether the signal is RT signal to go short or a TC signal to go long.
10. By waiting for the completion of the current bar we will get a confirmed signal (a RT signal to go short OR a TC signal to go long).
11. But, by the time the current bar copletes its course, the price might have moved too far in one direction or the other. So, waiting for the completion of the current bar is less profitable.
12. Instead, go to 1-Hr chart.
13. If 1-Hr chart is in the UP trend (price above 89 MA) and the price is sitting on the 21 MA (or, hovering between 8 MA and 21 MA) and IF THE MACD OF THIS 1-Hr. CHART GIVES A TC SIGNAL, then you can safely conclude that the signal that is still forming in the 4-Hr. chart with its current bar (which is not yet completed, though) is going to be a TC signal and take a long position way before the current bar in the 4-Hr chart completes and thus have a better trade (long trade).
14. We can boldly conclude the signal forming in the 4-Hr. chart is going to be a TC signal because (i) the 1-Hr. chart is in the up trend (above 89 MA) AND (ii) the price in the 1-Hr. chart is sitting on 21 MA or hovering between 8 MA and 21 MA AND (iii) the MACD on the 1-Hr. chart has completed a TC signal.
15. If the above three conditions are NOT met in the 1-Hr. chart, then, just sit tight and do nothing until the current bar in the 4-Hr chart completes and tells you what signal it is (RT or TC).
16. Phillip came up with this great solution because many of us, the suspious creatures, have questioned the RT signal (in the 4-Hr chart) because many times, the so called RT signal turns out to be a TC signal after the completion of the current bar or even after the completion of the next bar.
17. Conclusion: If an RT is forming in the 4-Hr chart and you are skeptic (like me) whether it is going to be an RT (to go short) or a TC (to go long), then, don't wait, go to 1-Hr. chart, and there in 1-Hr. chart, if a TC has formed, then treat your incomplete and apprehensive signal in 4-Hr. chart as TC signal and enter LONG immediately, without waiting for the completion of the current bar in the 4-Hr. chart and thus make a more profitable entry.
If there is not TC signal confirmation in the 1-Hr. Chart, sit and wait for the competion of the current bar in the 4-Hr. chart.
14. Here is the most important point At least for me).
15. In this project of "1-Hr. chart supporting the 4-Hr. chart", there is nothing else except the above-mentioned/detailed relationship between the two charts.
(Phillip, can you confirm the above observation. Here, I feel I am making this observation without enough understanding on my part)
Thanks, Phillip for all you have done to us.
-Chandra