OK:
Now here is a one minute chart for that one hour candle formation. You can see where the 1 hour candle broke through the 1.2575 area and hit 1.2576 for the high and backed off. This would have resulted in a loss for that position (depending on how you determine when to get out). Note: I'm not questioning you method, this is just an example to help clarify a few things. There is a lot of price action that makes a 1 hour candle as you can see. According to the one hour candle we would have bought when the candle was moving up (green) through the 1.2575 area, plain and simple. I believe you said to use limit orders for your trades. If we're looking to buy when the candle is moving up through a price, how is a buy limit order used when the limit order has to be placed below the current price? A buy stop at 1.2575 should be the correct order, shouldn't it? Also, how does using a 1 hour candle versus watching the candle forming on a 1 minute chart make it easier for 'noobs'? If your looking for only a handful of pips per trade, shouldn't a faster timframe be used? I understand about trading the Asian session, some people stay away from it because of the lack of movement for one reason. But, that fits right in to this strategy if you are only looking for a few high dollar pips.
Hope to hear back from you and thanks for providing this method.
Now here is a one minute chart for that one hour candle formation. You can see where the 1 hour candle broke through the 1.2575 area and hit 1.2576 for the high and backed off. This would have resulted in a loss for that position (depending on how you determine when to get out). Note: I'm not questioning you method, this is just an example to help clarify a few things. There is a lot of price action that makes a 1 hour candle as you can see. According to the one hour candle we would have bought when the candle was moving up (green) through the 1.2575 area, plain and simple. I believe you said to use limit orders for your trades. If we're looking to buy when the candle is moving up through a price, how is a buy limit order used when the limit order has to be placed below the current price? A buy stop at 1.2575 should be the correct order, shouldn't it? Also, how does using a 1 hour candle versus watching the candle forming on a 1 minute chart make it easier for 'noobs'? If your looking for only a handful of pips per trade, shouldn't a faster timframe be used? I understand about trading the Asian session, some people stay away from it because of the lack of movement for one reason. But, that fits right in to this strategy if you are only looking for a few high dollar pips.
Hope to hear back from you and thanks for providing this method.
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