Back to the H4 theory. Does this have any validity to you more experienced chaps out there.
You take the most recent H4 candle close value as S/R. If the MAs arelined up in the direction of travel, then you can trade the first HL/LH above or below the H4 close. If the MAs do not line up, then you need to see a LL or HH to confirm the change in direction.
I think, looking at Lawgirl's thread, and also backtesting as much as I can, that H4 closes are reasonable S/R levels.
Can anyone see an obvious flaw in this plan?
You take the most recent H4 candle close value as S/R. If the MAs arelined up in the direction of travel, then you can trade the first HL/LH above or below the H4 close. If the MAs do not line up, then you need to see a LL or HH to confirm the change in direction.
I think, looking at Lawgirl's thread, and also backtesting as much as I can, that H4 closes are reasonable S/R levels.
Can anyone see an obvious flaw in this plan?