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Phillip Nel Jan 28, 2007 2:35pm | Post# 1

4 Hour Strategy (MACD)
 
3 Attachment(s)
I am using this 4 Hour strategy only for the last month(Jan2007) as I have papertraded for 2 years trying everything and or system I could find. (I am trading equities for almost 10 years)I have decided that I will only go live(after some losses-not to serious) after I have studied the field of forex and are satisfied that I have a system that works. I do believe that we are trying to make it to impressive and difficult. This system is simple and easy to understand. I have backtested and forward tested it over more than 200 trades and it gives 300+ pips per month. I never had more than two(four max.) consecutive losses. I never use a stoploss bigger than 50. There are enough chances to ignore the ones bigger than 50.(The stoploss situation has changed as the market volatility has increased a lot over the years. Stops can be up to 100 pips currently 2011)

I am using this strategy only on the EurUsd and the GbpUsd. Have not tested it on other.
I hope that you will find some use for it and that it put you on the road to financial independence.

For a video on Youtube about the Market Rhythm follow this link
Inserted Video


Is this strategy still working (Feb2012)...............................................Page 1654 Post 24801

This is my list of major pdf's and mp3's from this thread.

TITLE................................... ................................... ..............................PAGE........POST

BEFORE GOING ANY FURTHER, PLEASE GO TO PAGE 681 POST 10212 AND PAGE 870 POST 13038 AS WELL AS PAGE 742 POST 11119 AND LISTEN TO "THE HEART OF THIS SYSTEM" AND SAVE THAT GRAPH. THEN GO TO PAGE 289-290 POST 4335 AND STUDY THOSE 13 LESSONS BY HEART. THEN START AT THE BEGINNING AND ESPECIALLY THE LIST OF INFORMATION BELOW.

For those understanding my English with difficulty go to Page 682 Post 10227 for a written copy of "The heart of this system"

TITLE................................... ................................... ..............................PAGE........POST

INTRODUCTION FOR ALL NEWCOMERS .........................................................1035 ......15519
____________________________________________________________________________________
Market Rhythm 4 Hour Strategy.doc ..........................................................1219 .......18274
___________________________________________________________________________
4 Hour MACD Forex Strategy.pdf ................................... ................................1.. ...........1
Planning your Trade.pdf.......................... ................................... ..................1..............1
Consolidation Management.pdf..................... ................................... .............15...........215
Clock_v1_3.mq4..................... ................................... ................................28. ..........410
MACD_H4_300_v100.mq4............... ................................... ..........................31....... ....461
Trend trading with MACD.pdf........................... ................................... .........32...........468
Setting up MA and MACD.pdf........................... ................................... .........43...........639
The question about papertrading.pdf................... ................................... .......48...........713
Presentation1.pdf.................. ................................... .................................54 ...........797
woodchuck.pdf...................... ................................... .................................60 ..........890
Breakout Positioning.zip (graph post 1130).............................. ........................76......... 1130
Euro Trendline.zip (graph post 1159).............................. ................................78. ........1159
MACD Signals.zip (graph post 1166).............................. .................................78 .........1166
Market Rythm AudUsd.zip (1197)............................. ................................... ...80.........1197
1Hour Strategy.zip....................... ................................... ............................92..... ....1372
1 Hour Strategy.pdf....................... ................................... ..........................92....... ..1372
1Hour Strategy 1.zip.............................. ................................... ..................98.........1456
1Hour Strategy 2.zip.............................. ................................... ................103..........1535
1Hour Trendcontinue Patterns.zip....................... ................................... ......145..........2165
Stoplosses.zip..................... ................................... ..................................1 53..........2281
Three little sisters.zip (graph post 2287).............................. .........................153....... ..2287
Pivot Auto.mq4........................... ................................... ..........................198...... ....2970
MACD_Colored_v103.mq4 + word file............................... .............................223... .......3342
Breakeven.zip (graph post 3748).............................. ................................... 250..........3748
FiboPivots4HMACD.mq4............... ................................... ...........................270..... ......4043
4Hour and 1Hour Supporting Signals.zip (graph post 4063).............................. ..271..........4063
4H calculation spreadsheet.zip.................... ................................... .............273.........4095

13 lessons
L1 Introduction.zip................... ................................... .............................290... .......4336
L1 Introduction 1.zip.............................. ................................... ...............290..........4336
L2 Tsunami.pdf........................ ................................... ............................290.... .......4337
L2 Tsunami.zip........................ ................................... ............................290.... .......4337
L3 Tecnical vs Fundamental Analysis.zip....................... ...............................290. ...........4338
L4 Market Rhythm Part 1.pdf.............................. ................................... ...290............4339
L4 Market Rhythm Part1.zip.......................... ................................... .........290............4339
L4 Price Motion 2.zip.............................. ................................... ..............290............4340
L4 4Hour and 1Hour Supporting Signal.zip......................... ............................290.... .......4340
L5 Drawing Trendlines.pdf..................... ................................... .................290...........4341
L5 Drawing Trendlines.zip..................... ................................... .................290...........4341
L5 Trendlines.zip..................... ................................... .............................290... ........4342
L6 Market Emotion.pdf........................ ................................... ..................290...........434 3
L6 Market Emotion.zip........................ ................................... ...................290...........43 43
L7 Flight Preperation.pdf.................... ................................... ...................290............4 344
L7 Flight Preperation.zip.................... ................................... ....................290...........4 344
L8 Anatomy of a Trade.pdf.......................... ................................... ..........290...........4347
L8 Anatomy of a Trade.zip.......................... ................................... ...........290...........4347
L9 Major MACD Signals.pdf........................ ................................... .............290...........4348
L9 Major Macd Signals.zip........................ ................................... ..............290...........4348
L10 Exercise MACD1.pdf.......................... ................................... ..............290...........4349
L10 Exercise MACD1.zip.......................... ................................... ...............290...........4349
L11 Trade Example.pdf........................ ................................... ..................290...........435 0
L11 Trade Example.zip........................ ................................... ...................290...........43 50
L12 Papertrading.zip................... ................................... ...........................291..... .....4351
L13 Conclusion.zip..................... ................................... ............................291.... ......4352

Rhythm, Motion and Emotion Explained ..........................................................791..........11852

Study by Hart.zip (graph post 4496).............................. ..............................300.. ........4496
4h MACD price movement rules.doc.......................... ................................... 301..........4504
Range Bound Rhythm.pdf......................... ................................... ...............304..........4549
Range Bound Rhythm.zip......................... ................................... ................304..........4549
Breaking down Motion from Monthly to 4Hour.pdf.......................... ..................304.........4551
Breaking down Motion from Monthly to 4Hour.zip.......................... ...................304.........4551
Not to be wiped out early.zip.......................... ................................... .........328.........4911
Which way is the trend.pdf.......................... ................................... ............329.........4934
Which way is the trend.zip.......................... ................................... .............329.........4934
Normal retracement strategy.zip....................... ................................... .........344........5155
Pulling the Trigger.zip........................ ................................... ......................376........56 27
Emotional Triggers.zip....................... ................................... .......................376........5 629
Phillip Nel- Three Little Sisters- written copy.zip........................... ...................394........5910
Lessons 1 to 7.zip.............................. ................................... .....................395........592 5
Lessons 8 to 13.zip............................. ................................... ....................396........5926
Risk Management 1.zip.............................. ................................... ...............396........5927
Risk Management 2.zip.............................. ................................... ...............396........5927
Phillip Nel- Risk Management 1- Written copy.zip........................... ...................397........5943
Phillip Nel- Risk Management 2- written copy.zip........................... ....................397.......5946
Phillip Nel- 1Hr Supporting 4Hour- 4June2007- written copy.doc........................... 458.......6862
1Hour Supporting 4Hour.pdf.......................... ................................... .............458.......6862
Phillip Nel- StopLosses- 11Mar2007.doc...................... ................................... ..494......7399
Landing the Profit.zip (graph post 7415).............................. ............................495.... ..7415
Phillip Nel Landing the Profit.doc......................... ................................... .........499......7485
Breakout.zip....................... ................................... ................................... .501......7513
Breakout trading.pdf........................ ................................... .........................501......7 513
Phillip Nel- Breakout Trading 18 Oct2007.doc........................ ............................502.... ..7519
Range Bound Trading.pdf........................ ................................... ...................535......8013
Range Trading 1.zip.............................. ................................... ....................535......8013
Range Trading 2.zip.............................. ................................... ....................535......8014
RangeTrading_1_and_2.doc........... ................................... .............................535... ...8020
Knowing the System.zip......................... ................................... ....................538......8065
Knowing the system.doc......................... ................................... ...................541......8103
Planning Your Trade.zip (graph post 8349).............................. ..........................557...... 8349
Phillip Nel Planning Your Trade Post 8349 Page 557 9Nov2007.doc....................... ...558......8368
4h_MACD_FX_Strategy_Locked_TF.mq4.. ................................... ......................576......8628
Money_Management_Eng.xls........... ................................... ............................610.... ..9139
Position Calculator.xls..................... ................................... ...........................610..... .9148
Trailing Stops.zip.......................... ................................... ............................636.... ..9535
Temp.zip........................... ................................... ................................... ...640......9587
Trailing stop post 9535.doc........................... ................................... ..............640......9592
Temp 17December 2007 post 9587.doc........................... .................................64 1......9612
PhillipNel Lesson4 PriceMotion2 Post 4340.doc........................... .........................644.....96 54
PhillipNel 1Hour Supporting 4Hour Post4063 Page271.doc........................ .............648......9709
candlesticks.zip................... ................................... ................................... ...650.....9736
Large Candle Entry Spread.zip......................... ................................... .............651.....9760
PhillipNel Emotional Triggers written copy post 5629 page 376.doc...........................6 51....9764
PhillipNel LargeCandle Entry Spread page 651 post 9759 21Dec2007.doc....................652....9771
Market Volatility By Rebecca..............................................................................859....12884
Positional Trade ............................................................................................1035 ...15521
Gap Trading on Sunday Nights .........................................................................1133....16988

EDIT: For a summary of the 4 hour system go to page 289 Post 4335.
4 Hour MACD Forex Strategy.pdf
Planning your Trade.pdf

MikeC Jan 28, 2007 3:08pm | Post# 2

nice system
 
Thanks for posting your system. I am relatively new at this, so I will have to look it over a few times to be able to recognize entries. The conistent volume of pips is encouraging.

Phillip Nel Jan 28, 2007 3:13pm | Post# 3

4 Hour Strategy
 
Thanks for posting your system. I am relatively new at this, so I will have to look it over a few times to be able to recognize entries. The conistent volume of pips is encouraging.
That is what everyone should do. Go to history and look at the MACD till you see the motion and the setups.

C.E.O. Jan 28, 2007 3:19pm | Post# 4

Very nice Phillip. Well thought out, well documented. Thanks for the time and info.

sambar Jan 28, 2007 3:32pm | Post# 5

Looks Good
 
I am using this 4 Hour strategy only for the last month as I have papertraded for 2 years trying everything and or system I could find. (I am trading equities for almost 10 years)I have decided that I will only go live(after some losses-not to serious) after I have studied the field of forex and are satisfied that I have a system that works. I do believe that we are trying to make it to impressive and difficult. This system is simple and easy to understand. I have backtested and forward tested it over more than 200 trades and it gives 300+ pips per month. I never had more than two consecutive losses. I never use a stoploss bigger than 50. There are enough chances to ignore the ones bigger than 50.

I am using this strategy only on the EurUsd and the GbpUsd. Have not tested it on other.
I hope that you will find some use for it and that it put you on the road to financial independence.
Phil
Thanks for sharing you have put alot of work into this method I will try this out and let you know how I get on
Thanks again
Sam

akbtrader Jan 28, 2007 3:49pm | Post# 6

4 hour MACD strategy
 
This is the most detailed and specific trading strategy I have ever read after a year of reading and study. This is very practical and helpful. Thanks for sharing your strategy.

rochemb Jan 28, 2007 5:21pm | Post# 7

MACD Levels
 
Phil,

Thanks for sharing your system. Please comment on how the MACD levels (horizontal lines) relate to the MACD patterns you act on. Do the patterns have to reach certain MACD levels to be valid, etc.? Also, do you enter with a fixed SL and then adjust it as the trade progresses? Thanks.

Raptor1 Jan 28, 2007 5:36pm | Post# 8

Thanks Phill
 
Thanks for sharing this strategy it looks very promising, and keep up the good work. I am grateful.

anthonyrae Jan 28, 2007 7:28pm | Post# 9

Hi Philip,

I have just recently seen something like this on foex factory, so it looks that guy and yourself are onto something here!!

Great post and thanks for writing up the very detailed and thorough documentation !!! Makes it so much easier to understand than just saying my strategy is to enter a trade when x crosses y etc...

All the best with your trading and when you go live, keep us updated !!

Anthony

kamil007 Jan 28, 2007 8:19pm | Post# 10

Thanks
 
Thanks a lot, it seems to be interesting. I'm gonna try it.
Kamil007

sagecss Jan 28, 2007 8:35pm | Post# 11

Phillip, thanks for sharing your stategy...I found it most informative

drcole1 Jan 28, 2007 8:57pm | Post# 12

I am using this 4 Hour strategy only for the last month as I have papertraded for 2 years trying everything and or system I could find. (I am trading equities for almost 10 years)I have decided that I will only go live(after some losses-not to serious) after I have studied the field of forex and are satisfied that I have a system that works. I do believe that we are trying to make it to impressive and difficult. This system is simple and easy to understand. I have backtested and forward tested it over more than 200 trades and it gives 300+ pips per month. I never had more than two consecutive losses. I never use a stoploss bigger than 50. There are enough chances to ignore the ones bigger than 50.

I am using this strategy only on the EurUsd and the GbpUsd. Have not tested it on other.
I hope that you will find some use for it and that it put you on the road to financial independence.
Thanks for all of your hard work. I love the Macd. And I do think that you see it exactly the same way I do. I have a day chart setup and it seems to work pretty close to what you are doing with the 4 hour charts. I am looking forward to seeing more of this system as time goes on.

DC

~Shard~ Jan 28, 2007 9:28pm | Post# 13

I am new to Forex Factory and have only been trading the news up to this point. I am finding all of these trading systems fascinating and look forward to giving them a try. Thanks for this!

Tw0eleven Jan 28, 2007 9:48pm | Post# 14

Phillip Nel, Looks like a nice strategy you have there. I was reading through your docoment and had just one question for you. On page 18, you mentioned that "you only trade the trades that give signals at 1700, 2100 and 0100(GMT +2)." Could you convert that into U.S. EST? My math says that's at 10am EST, 2pm EST and 6pm EST...is that correct?

Thanks!

Panjan Jan 28, 2007 10:30pm | Post# 15

Philip,

Very interesting cause I haven't pay much attention to MACD. But I like the 4hr time frame cause it fits my trading style.

Very detail documentation and easy to undertsand.

Wish you all the best.

doblece Jan 28, 2007 11:15pm | Post# 16

Phillip Nel, Looks like a nice strategy you have there. I was reading through your docoment and had just one question for you. On page 18, you mentioned that "you only trade the trades that give signals at 1700, 2100 and 0100(GMT +2)." Could you convert that into U.S. EST? My math says that's at 10am EST, 2pm EST and 6pm EST...is that correct?

Thanks!
Those times are correct, and switch to be 9am, 1pm and 5pm EST under DST (Daylight Saving Time).

Phillip Nel Jan 28, 2007 11:21pm | Post# 17

4 Hour Strategy
 
Phil,

Thanks for sharing your system. Please comment on how the MACD levels (horizontal lines) relate to the MACD patterns you act on. Do the patterns have to reach certain MACD levels to be valid, etc.? Also, do you enter with a fixed SL and then adjust it as the trade progresses? Thanks.

The horizontal lines is just there to show overbought and or sold levels especially on the EurUsd. Sometimes the movement is close to the zero and within the fisrt MACD zone. I only use it as benchmarks as to where the MACD are at the moment. If one zooms in then you dont loose sight of the position of the MACD.
The MACD does not have to reach certain levels. It is only when it zig zag accross the zero that one must be carefull but it happens when the price is in a narrow channel waiting for a breakout.
Stoploss is set at the most resent high or low or at least two bars away. Do a bit of backtesting to get the feel for it. I try not to use equal numbers like 30, 40 etc. I rather use 33, 43 etc. Equal numbers seem to be sometimes the target . Stoplosses also depend on the capital and risk profile of each individual. It is with what you are comfortable with but at least out of the way. Because this strategy normally preduces a move right after the entry the stoploss dont have to be big.

Phillip Nel Jan 28, 2007 11:25pm | Post# 18

4 Hour Strategy
 
Those times are correct, and switch to be 9am, 1pm and 5pm EST under DST (Daylight Saving Time).
Thanks

turk87 Jan 29, 2007 12:53am | Post# 19

Very cool, thank you very much for posting this. I have a question.

1. How long do you usually hold a position??

fjfx Jan 29, 2007 1:42am | Post# 20

Thanks Phillip for your system and detailed explanation.

I'm still digesting your stuff and glancing at my charts.

Will fire my questions soon if there are any. Thanks.

FXSnipe Jan 29, 2007 2:48am | Post# 21

Thanks Phillip for the MACD system it looks good, will paper trade it for a while. I hope you don't mind me asking? Where are you from ? South Africa? Myself , I'm in Jo'burg.

SeekingLight Jan 29, 2007 4:33am | Post# 22

Hi Phil,
anyone who can come up with something that made +409 in August 2006 has my respect

I love price action and always knew the price patterns would reflect in the MACD, too. Great job finding them out and then sharing this system for free! *hugs* Also like the fact that you use the sound logic of "if it goes past 50 pips stop it's not worth it anyway". I totally agree, either a trade goes - then you didn't need much stop - or it blows, then no size of stop can help you.

Great work!

My best regards,

SeekingLight

kaar411 Jan 29, 2007 5:00am | Post# 23

4 hour strategy
 
I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks

don perry Jan 29, 2007 8:08am | Post# 24

cool strategy. thanks for the time and dedication

SeekingLight Jan 29, 2007 8:45am | Post# 25

I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks
Kaar, he said he uses Mig, I assume the MIGFX demo feed as his basis, best to just get that and base your research on that accordingly.

And going from what he said he only trades the candles at 18:00 20:00 and 0:00 on Mig time?
Please confirm this Phil, as I would really be interested in hearing that this is indeed the time, as that coincides really well with my evening

Phillip Nel Jan 29, 2007 10:00am | Post# 26

4 Hour Strategy
 
Kaar, he said he uses Mig, I assume the MIGFX demo feed as his basis, best to just get that and base your research on that accordingly.

And going from what he said he only trades the candles at 18:00 20:00 and 0:00 on Mig time?
Please confirm this Phil, as I would really be interested in hearing that this is indeed the time, as that coincides really well with my evening

Yes 16:00 20:00 and 0:00 on my platform.

Phillip Nel Jan 29, 2007 10:01am | Post# 27

4 Hour Strategy
 
Thanks Phillip for the MACD system it looks good, will paper trade it for a while. I hope you don't mind me asking? Where are you from ? South Africa? Myself , I'm in Jo'burg.
Ellisras in Limpopo

techno79 Jan 29, 2007 10:15am | Post# 28

I use VT platform does anyone have the setup for the MACD, there is no fast or slow EMA settings and if you set the MACD at 1 there are no lines to read. Thanks
I'm assuming you put the numbers in order.
Fast is short, slow is long, and the 1 is MACD.

To get the lines, I had to use the third version of the MACD. Moving average convergence/divergence. Now it looks just like the pdf. Will have to see if it really is correct though,but looks good so far.

I was accidently looking at the 15min instead of the 4 hour, looks right there.

Phillip Nel Jan 29, 2007 10:19am | Post# 29

4 Hour Strategy
 
Very cool, thank you very much for posting this. I have a question.

1. How long do you usually hold a position??

As long as I am still within my plan for the trade. From 1 Hour to a week.

FXSnipe Jan 29, 2007 10:21am | Post# 30

Ellisras in Limpopo

Oh, my parents are in Tzaneen. Thanks once again for sharing your system, I have always used an MACD but yours adds some more ideas on how to apply it.

Phillip Nel Jan 29, 2007 10:30am | Post# 31

4 Hour Strategy
 
1 Attachment(s)
Hope you took this one

A. 1 Profit already in at 20 pips for 4 minilots
B. Have Set stoploss to 10 below entry for 6 minilots lots with 2 Prof(4 minilots) set at 1.2945


Just want to add that the rule says that when the price goes through the 89SMA it tends to pull back to the 21EMA before proceeding the trend. We have a situation now where the price went down through the 89SMA and has pulled back to the 21 EMA. Be aware of that. I have set my stoploss at 1.2905(10 below entry) to combat the move should the price comes down. The MACD will show me when the trend is continued below the 89SMA and then I will enter short.

I just have a feeling that we are going to see a test of the 89SMA.


Update:
Just closed other 4minilots at 1.2945 and set stop on other 2minilots at 1.2940
Update:
Closed other 2minilots at 1.2960
Update:
Total for the day was .4lots @ 20 pips, .4lots @ 30 pips and .2lots @ 45 pips for a total of 29 pips on a full lot
Name:  4 Hour Strategy.GIF
Views: 41007
Size:  13 KB

yen44x Jan 29, 2007 11:44am | Post# 32

Yes 16:00 20:00 and 0:00 on my platform.
Phillip,

For those of us who live in other parts of the world, I'm curious if you chose your 3 times to place trades because other time frames did not perform as well in back testing or if it was more a case of coinciding better with your work schedule.

Thanks for sharing your method.

Golfpro Jan 29, 2007 12:04pm | Post# 33

How to get vertical lines in MACD?
 
Hi Everyone! I like the looks of this system. One question, I use FX Trek Intellicharts. Can anyone tell me how to get the vertical lines in the MACD? Your help is greatly appreciated.

1Sundevil Jan 29, 2007 12:22pm | Post# 34

Interesting system. You should start to post your specific trades or a journal of your activity so others can follow along and better understand your set-up's as they are happening.

Phillip Nel Jan 29, 2007 12:23pm | Post# 35

4 Hour Strategy
 
Phillip,

For those of us who live in other parts of the world, I'm curious if you chose your 3 times to place trades because other time frames did not perform as well in back testing or if it was more a case of coinciding better with your work schedule.

Thanks for sharing your method.
It is just because of working schedule and limited internet access during working hours.

These were the amount of deals for 2006 per time (GMT+2)
01:00---25
05:00---34
09:00---17
13:00---46
17:00---52
21:00---29

alcastro Jan 29, 2007 12:24pm | Post# 36

About stops
 
Hi Phillip,

I like your system. I will be forward testing it until I get a real feeling for the MACD. I have one question regarding your stops, though:

If the distance is less than 50 pips, and no S/R nearby, do you tend to put them at the low/high of the previous candle?

Thanks for your answer.

Alcastro

endy Jan 29, 2007 12:35pm | Post# 37

Invalid trade on GBPUSD at 15.1.2007
 
Hi Phil,
thanks for the idea, it really rocks.

Moreover, I would like to ask, if you check Cable during January 15, it seems, the MACD shows pretty overbought state (the value reads 0.007), however as you can see, entering this trade (in my system it looks like I would enter SHORT on 20:00 candle (MACD started to sink)), would not work out very good.
Now I am just thinking how would one filter this trade.
It seems SMA200 is pretty close, could that be the sign, that actual price difference between SMA200 and price is not that big, so the trend is not mature yet ?
Or do I see some kind of SHS in this MACD (in the time of potential trade, it would be only SH, right shoulder was about to be finished) ?
Or how would you proceed with this trade ?

Thanks a lot,
Endy

Phillip Nel Jan 29, 2007 12:43pm | Post# 38

Hi Phillip,

I like your system. I will be forward testing it until I get a real feeling for the MACD. I have one question regarding your stops, though:

If the distance is less than 50 pips, and no S/R nearby, do you tend to put them at the low/high of the previous candle?

Thanks for your answer.

Alcastro
That also depends on the profit targets. If I can only plan to manage 30 pips out of the deal I want my stoploss not to be greater than that. I sometimes even uses two candles back if the first one is a small candle.
Todays trade (post31) had entry at 1.2915 with stoploss at 1.2890 initially and the previous candles fell nice within that range.
I also takes profit in stages so that when a trade has run to the first S/R I like to get something in my pocket. I like to get to breakeven as soon as possible and the let the rest have its run.

alcastro Jan 29, 2007 1:02pm | Post# 39

That also depends on the profit targets. If I can only plan to manage 30 pips out of the deal I want my stoploss not to be greater than that. I sometimes even uses two candles back if the first one is a small candle.
Todays trade (post31) had entry at 1.2915 with stoploss at 1.2890 initially and the previous candles fell nice within that range.
I also takes profit in stages so that when a trade has run to the first S/R I like to get something in my pocket. I like to get to breakeven as soon as possible and the let the rest have its run.
Phillip,

thanks for your answer. It makes sense.

I am going through your PDF and I have found a pattern that I don't quite get, but where you seem to get a lot of pips from. For example, in the JAN 2006 chart, your 4th trade (that made +20 pips), did you consider that one a "through zero and pull back" even though it went pretty low? If that is the case which is the criteria to consider a "through zero" (if it doesn't goe past the +/- 0.0015 MACD level?

Phillip Nel Jan 29, 2007 1:02pm | Post# 40

4 Hour Strategy
 
1 Attachment(s)
Hi Phil,
thanks for the idea, it really rocks.

Moreover, I would like to ask, if you check Cable during January 15, it seems, the MACD shows pretty overbought state (the value reads 0.007), however as you can see, entering this trade (in my system it looks like I would enter SHORT on 20:00 candle (MACD started to sink)), would not work out very good.
Now I am just thinking how would one filter this trade.
It seems SMA200 is pretty close, could that be the sign, that actual price difference between SMA200 and price is not that big, so the trend is not mature yet ?
Or do I see some kind of SHS in this MACD (in the time of potential trade, it would be only SH, right shoulder was about to be finished) ?
Or how would you proceed with this trade ?

Thanks a lot,
Endy

Your analyses of the situation sums it about up. MA's to close. Not a reasonable maybe head and shoulders forming. I would have taken one wrong trade the first one with a slight double top. After three even four candles it still did not produce anything. Cut your losses at that stage. A break of the 89SMA says a pull back to the 21EMA and then on with the trend. Exactly what happened. See the picture
Name:  4 Hour Strategy.jpg
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