4hr on Weekly Trends

Hi,

I've seen so many great trading systems here. Im just doing a small part to contribute a simple system.

You need the CLOSE of the last weekly candle and 4 SMA to determine your trade direction for the next week. If its a RED candle then plan on shorting. If its a Green candle then plan on longs.

On the 4hr Charts :

Use SMA 30 on the 4hr as guide for price movements.

For Long trades,
Price bounce or crossing down on MA usually gives indication that you are likely reaching a VALUE Buy area.

Additional tools that helps but not core :

Fibs level taken of trend swings helps...38.2 - 61.8 are also seen as criticla levels, its advised you plan your entries based on PA along these lines.

RSI 14 testing/cutting below 50 is another indication to go long. Further RSI movements to 30 or below gives a strong signal to further buy up. Do exact opposite for shorts.

Use MM to your own discretion.

PS: Use of 30 period sma simply identifies the weekly PA. If the week closes with a red candle, you are likely to see price trading below the 30 SMA on the 4hr. Below attached Euro Dollar Weekly.

regards
Jest

Hi Below i have attached a sample 4hr chart...

Red line is 120 sma = monthly trend
Blue line is 30 sma = weekly trend
Its not a constant winner, usually you lose when weekly trend change

System is basically geared to keep you trading with the trend and change with the trend accordingly.

If you prefer to trade the daily, just refer to monthly candle close...if its green then look for value buys on daily if its red, then look for good selling zones.

hey there u are in to something keep it simpel ;-) current i have 1 nice chart i think u like it too is eurgbp. however keep up making such simpel strategys this is good i like it

revoke

I dont know if you have noticed, but RSI tends to rocket up off of 50 if above it and than touch and it tends to drop when hooking under it

Hi Jimmywa,

What i like abt it is it shows a clear trend when used properly, i dont usually use the divergences anymore. instead of using 30 50 70 levels, try using 20, 40, 60 and 80 and negate the idea of oversold or overbought when using the rsi.

An alternative way to trade the RSI...http://www.trading-naked.com/library...ermination.pdf

if we could see all the USD related pairs are trending up very nicely of late..the trend is so strong that every retracements could give a good support once RSI reach 60% on the Daily bars...in anycase, if the retracement touches 40% we will likely see a good trend support here. Again this is indicator based and by no means controls price action. What we would be looking for at these levels to backup our indicator theory are further supports made by MAs/Fibs and candle forms.

Hi revoke,

Simple systems usually works...they don't win all the time but trend is usually friend.