4 Hour Strategy (MACD)

Well, I'm not making the pips yet, because I'm still in the process, but I think it's important to read it all. I'm up to page 114 post # 1696, and I've learned a ton already. I've made a few trades and missed a few, but it just keeps clearing up bit by bit, and I know the power of this style. I also know this; you won't find a better place to learn to trade this market than right here. If you have previous experience and some trading knowledge, you'll be able to use what you know in this system, and if you have no experience, this is the place to start getting it. The people who contribute here are terrific and Phillip is almost too good to be true; a patient and thorough teacher who just wants to help others prosper.

How about this. We'll race and see who gets through this whole thread first. And yes I know I'm already ahead of you, but I have 3 boys under 7 years old that keep me very busy. Are we on?

Having fun but pushing forward,
Richard

Hello Herringtrader and welcome to this great thread. In answer to your question, yes you can certainely make 300 + pips a month with Euro or others currencies if your dedicate yourself to learn all the important aspects of this great method. I know this a lot of work but if you consider it as a business, you really need to be totally commited to it and have passion that will push you to learn more and more about it. Richard7 is right in saying that it is crucial to pass through the whole thread as the insight that you will get would be incredible and it will speed up more than tenfold your market knowledge. There is lot of people here who are very successful with this method so yes you can hope to succeed at it if you put the necessary efforts and commitment.

As for your account size of 10 000$US and how much you can play per trade, what I would reccommend you is never to play more than 3% of your account balance on any single trade. This will keep you in the business for the long run. So, in your particular case 3% would be 300$ so if you want to play a full lot (10$ a pip) you could afford a max stop loss of 30 pips. Or you can downgrade your lot size to 5$ a pip so that you can have a stop loss of 60 pips if the need is there and so on.

Also, another important aspect of risk management (which is crucial in this business) is to have a good Risk to Reward Ratio (R:R:R equal or more than 1:1 on every trade. You cannot risk more than you espect to make in terms of pips.

If you want my personal opinion, even if I would have your account balance, I would not begin with a full lot but with a mini lot like 1 pip = 1$ or 2$ so that I do not risk a lot of money when learning the different aspects of this method.

Of course, this imply that you have already papertrade by live demo at least 30 or 50 trades and became successful at a minimum rate of 70% before putting any real money. This a great advise that Phillip as given us again and again that we cannot skip. Demo trading is capital to get a grasp of the basic rules.

Also, when you get a good grasp of the system and how it works, before putting any trade demo or true money, your need to ask a couple of questions that will help you make the right decision in your trading decisions:

1) What is the behavior of the the current price action in relation to the different moving average such as the 89SMA, 21EMA, 200SMA, 365EMA or 8EMA? What is the behavior of the price action in relation with the trendlines or support or resistance levels that you have drawn on your charts? Also, what is the behavior of the price action in relation to the round numbers (00, 50) levels? to the fibonnaci or pivot levels? All these questions are very important to ask before making a trade as you need to discern what is the "MOTION OF THE MARKET" before putting any trade.

2) Is there any news announcements soon that can affect your trade once it is placed? If yes what are you going to do with it?

3) What is the R:R:R regarding this particular trade? Is it worth it? Is there enough space or room for your trade in term of your stop loss and take profit area (= or more than 1:1)? (RISK MANAGEMENT)

4) What are the different candles patterns that are present that can affect the direction of your trade such as shooting star, hammer, doji, spinner, head and shoulder, double or triple tops and bottoms and so on? This is important as it relate to the "EMOTION OF THE MARKET"

5)Finaly, is the MACD giving a signal that is in harmony with the current motion of the market and with the actual emotion of the market?

If your can answer all these question with confidence, then you have a high probability trade. This kind of setup can take some time to manifest and develop but is really worth the wait.

Sorry if my answer was long but I do think that all these thoughts can help you, me or anybody new to undertand how this system works.

Anyway these thoughts do not really came from me but from my understanding of what Phillip is teaching us in his great generosity.

So Dear Herringtrader, take your time to learn all these importants aspects and there is no rush and in the future you will be happy that you have done so.

A good help to start studying this thread could be to read the 1st post with its attachements and the summary that Phillip have put on page 289-290 and 291 and then proceeding to read the whole thread.

So happy trading and wishing you a great joyful learning experience

Sincerly

Shreem

It's my pleasure!!!
Pips, it was a great idea from a great person (see my PM) and thanks for tapescript on trendlines. I will collect all the lessons, from Shreem too (thanks ) and sent them to Phillip. I was looking for the way to contribute, and this is little that I can do. If this is useful for Phillip or someone else I would be happy.

Shreem!

WOW!!!! What a great post!!!! I'm going to print it out and read it regularly...especially when I get silly with my entries!! You have a gift!!!
Thanks again!!!

Boy, are we ever lucky to have such a hard working community! & even better, nice too!!

Thanks again.

Pips

Hi phillip

Would you pls confirm my understanding of 1h S. 4 H.
Look at the pound today.. trend cont., on 1h chart and and look like a TC will be formed on the 4H.

Long @ 2.0008

Ammar

hi

i cannot get to the public chart. where is it located?

thanks

Hello Pips, you most welcome. More thank to you to have made this transcript. It is very great and thank again for all the great posts that you give us. Everytime I read you, I learn something new and it help grows my confidence.

As they say, You are really a Pips Eating Monster and I hope that you can find a lot of foods to feeds your beast in the coming days and weeks

Truly, Pips, thank for all the great insights that you are giving to us.

wishing you all a great trading day

Be caureful about the FOMC decision abount rate hike

Shreem

Translating: Intelligent computer translator Translatica
---------------------------------------------------------
That is so Awesome!.

Such great willingness for helping to others people is wonderful in this thread.

There was many thanks to the author of this Strategy. Thanks again Philip!
I want to thank to all which are exchanging Philp's words into the text.
These transcripts of Phillips MP3 are fantastic tool in better understanding materials - specially for me and others where English isn't our language)

I thought what I can carry to the thread. I assumed thread about this strategy on the Polish forum about forex - On Polish Skype Chat named "4 Hour MACD Strategy - POLAND" we are trying to discuss and share experience about this strategy.

If my fellow countrymen are reading the forum I am inviting to discussion:
http://www.skocz.pl/4HMACD

Hello everyone, Here is a little contribution. words of wisdom by Master Phillip . Helped me a lot. please refer to the charts on the PDF original attatchment as well, post number 4934 page 329.
Happy Trading!!!

P.S i have also added PDF format with a larger font size incase some one had aproblem with the DOC format.

Hello there. you are lucky to have found this forum. You will not regret the time and effort you will be putting in. Shreem answered amazingly well to your question. Just wanted to add a little psychological aspect of trading.

Patience will take you a long way.
Please dont take every MACD signal.( like shreem said learn the rythem of market).
Please do not over trade. If u had couple of good trades a week , take what u made and walk away. Because what the market gives it can take right back if u are not careful.
Only and i am serious ONLY go for high probability trades . Trend continuation
will be your best friend.
You said u are interested in trading EURO. Brilliant. learn one pair inside out and when u are confident enough, then decide to look at other pairs of your choice. please do not jump around .
This system will teach you a lot if you stick to the rules. Good Luck.

Euro seems to have found support at 1.3442 and resistance at 1.3470. there is a trend continuation signal on 4 hour , off of the 21 and 200 MA. Anyone else looking at it for euro long.
Thanks.

Hi, Nadia,

Commodity currencies and Cable (high interest rate currencies) are all showing bullishness against USD today even before FOMC. EUR, Swissy and JPY are showing indicision. Any dovish sentiment of FOMC may lead to massive selling of Yen crosses, which eventually will pull down EURO. I prefer stay at the sideline. Patience !

seiji

I took the AUDUSD signal on the Meta Trader demo account, at the 16:00 bar open, at .8469. That was at 14:00 GMT. Stop at .8423, below all the moving averages except for the 365, which is way down there. The other moving averages are starting to cross over the slower ones to the upside. Daily trendline support, from May 29 to June 14, which was violated and may act as resistance, came in at .8482. The most recent high was at .8512. Notable daily pivots range from the main pivot at .8401 to .8549.
R1 pivot resistance, now support, is at .8445, just above the 4 hr. 21 moving average. Since price movement has quieted down and since the Aussie move up was sharp, I'm expecting the possibility of a pretty good retracement, maybe to the .38% Fib of .8428. In anticipation of this, I'm playing with the tail of the bull and have a live account GTC long order for .8445. I can't figure out if I'm trying to avoid getting in on the trade by putting my order too low or if I'm taunting the bull, and he'll turn on me. I'm banking on the FOMC announcement to be a non event again and know that I could be wrong about that. Oh, the agony, the excitement! One mini lot is all I can stand, and I'll see if I get a chance to compete with my demo account. If price doesn't move down to my live trade order before FOMC, I'm out of my live deal. I'll leave my demo in the tender embrace of the Australian bull. Maybe they'll go dancing. My limit is at .8500, just under the last high. If price goes up over .8482, I'll move my stop to break even, .8445 if my live order is taken.
Please, no one take this as advice. I'm in the early stages of learning still and have a lot of bad habits to overcome, namely the clouding of judgement by hopes and fears.
I have a question for the more experienced. Is it a legitimate approach with the MACD to wait for a lower level, when price is moving so slowly? This is, for me, at my trading times, the most common occurence, slow mov'n cattle, waiting for the stampede.

The people on this thread are most wonderful, and too many to name right now. Ira, and others, I can keep up with Phillip's daily updates in present time, if that's any help. And Phillip, as everyone else says over and over, I can't thank you enough for all your effort!

??

Profound...that's all I can say...

Looked OK for me. Nice TC on 1H.

Many thanks

I'm very happy to announce that we have a tapescript team: Pips, BIL2205 and me! So, Phillip, soon you'll have a tapescrip of your lessons! Million thanks to my friends!

Hi All,

I have been very patient with the eur and finally I saw what i thought was some rhythm, price was squashed between the main daily trend line which had not been broken yet and the 4H trend line. There was a small rounded bottom on the macd and i remember what Philip said about positioning your slef for the break out.

Anyway patience wins the game.

Im not sure about profit targets for this one, it could go up along way if it is a change in the dialy trend what do you all think?

-D-

"Let the market come to you..."

Obi Wan's, I mean Phillip's words of wisdom...