4 Hour Strategy (MACD)

Hi benniardi!

! Take your time learning and getting the basics down well and right!! It is so much easier to form good habits originally than to re-learn them later.

Good observation on the consolidation patterns. Only your testing will let you know how you want to position yourself. I expect the consolidation to stick with us through interest rate statements and possibly NFP. Then we may see some good moves -- and next week may give us a true direction.

In the meantime, if I enter the market, I'm playing ranges and watching them closely. I'll do my chart review/trade planning in a few hours...until then nothing for me!

Happy Planning & Trading,
Pips

Hey folks...Phillip and I have put together a quick way to 'see' the strength of the rhythm of the market. It is simply called Rhythm Strength and has a value of +2 for Strong Bull Rhythm Strength down to -2 for Strong Bear Rhythm Strength. There is an active link on the website called Market Rhythm that explains how the values are derived, very simple, along with chart examples that show the moving averages, the close, and what the Rhythm Strength would be for that chart. Market Rhythm is a key element for the method so I thought it would be a good idea to be able to 'see it'. I'm still working on the chart examples page to show set-ups and how to trade the 'rhythm trend' so I'll let you guys know when that is active. I may be out of town all next week so...

Either way, the Rhythm Strength is not to be used as an entry signal or indicator to trade by, it's just a value of where price is in relation to the moving averages. There is also a Current Rhythm link that will be active this weekend, gotta wait for Friday's close to get the values. This can be used as a quick look ahead for the upcoming week to see what the current strength of the price action is. It should be self explanatory but if anyone has any questions, please ask. Here's the graphic that is on the site that explains how it is derived.

And if there are any broken links, spacing issues, or if I misspelled rhythum anywhere please let me know. Pips4uandme agreed to send you a pip flavored lollipop if you find any errrors.

Still holding that E$ short...it's about to put me to sleep. I need a shower...

Hi Palmer!

I'm going to make my first post on fxtradeblog! Wish me luck!! Then, I've got to see this market rhythm post! Looks truly awesome!!! & yummy pip flavored lollipop? I love pips and I love sugar....what could be better??


Hey...Wait! I thought I got the Lollipops!!!

OK...I just posted my E/J short on the tradeblog....reasons for trade:

1. MACD 4 hour = TC Down -- Price retraced to ~ 8 EMA and has moved down.

2. Close below a support level I have identified on 4 hour chart

3. Break of 1 hour support line occurred 2 hours ago (this concerns me for retrace).

4. r:r is better than 1:1 -- but I do have some serious concerns about price bouncing so only 1 lot was entered.

pips:

Whew....that's lookin' from the inside out if you ask me! Starting to see the way you think there tough guy..

E$ looks like it's trying to get weak...just needs a kick in the --- to get going.

Oh yeah, there is a link for all of the lessons so they can be downloaded from the method page...oy oy oy

Taking a look at the daily E$...

Stuck between 1.3700 and 1.3600. MACD barely making it above the 15 level on the plus side. Trading the 4hr might be difficult until this range is broken.

This is a quote from page 6, Post 81.... Look at the attached charts, can someone please explain which MACD patterns, the two buy and sell orders are for?Is there a MACD pattern where the line breaks through 0 and then heads back towards it (not a rounded top) I don't see why they fit and pattern at all?

Thanks in advance

James

Hmmm...is that a good thing?


& here is the bounce that concerns me....6:36 PM PST...If price closes above 157.24....

James:

When the MACD pattern breaks above the zero line, then comes back down all while price is below the 89, this is a trend continuation signal to the downside. The charts are king of hard to see. But, taking a signal the candle before the news is kind of risky either way.

Hope you guys went short E/J yesterday & not today. Last nights was great...today resulted in -39....

MACD (5,13,1) is Elliott Wave Oscillator and is also the crossing of EMA(5) & EMA(13). If you can plot EMA(5) & EMA(13) on the chart, you can see it easier.
http://www.forexfactory.com/attachme...1&d=1189055757

I was doing good this week, very disciplined, 2 deals +88 pips. Don't want to give anything back to the market, so I'll stay out with all this news, rates today and Nonfarm Payrolls tomorrow. If my hands will scratch I better play "5min strategy" on demo.

Great stuff about market rhythm Palmer.
Hey guys, don't forget to click the commercials while reading http://www.fxtradeblog.com !!!!

Hi Palmer,
great thing with the trade blog, it really looks great and I hope you'll have enough spare time to keep it running and growing.
I have one question though, did you think about adding email notifications to the forum posts available for others? Or RSS feed..
I think it would help a lot to others, and word would be spread much faster.

BR,
Endy

I'm with you, Ira, am sitting on my hands looking at what appears to be a TC on the 4hr for the EU with neutralization on the 1hr chart. This is tempting to go long. How do we set TP above all of our MAs? If this is a true neutralization, price is "supposed to" go as high as the first leg up which would put it around 1.3720.

Any comments?

Rick

ira:

I agree, lots of news that can affect the $ pairs. I'm flat until the noon candle.

endy:

Yes, that is in the back of my mind but you kind of answered the question already. It's taking up a lot of time to get the website up to speed. Posting to the blog really doesn't take up much time at all. As far as the email alerts go, that just means that I have to keep up with an email list and for those that might want to de-subscribe I have to take care of that also, I think. There may be an option where the forum takes care of that by itself. I have to check that out. Some of my 'chores' have been lacking the last several days but I'm guessing that once the website is 'complete' the time factor to put aside for it should go down. I'd like to get the site where it needs to be and then consider the email for the blog. I like to finish up one project before starting another if you know what I mean..Thanks for the input though....

I set a limit order of 1.0535 and sold at 1.0665 for 30 pips. The 89 and 365 acted as resistant. I did not get the momentum I desired. I received a 30 pip gain.

just getting started on reading this thread...wow...lots of info!! thanks guys.

Anyway, has anyone created an MT4 indicator, nice and clean, for this method?

Thanks again,

BearPaw

A long position on eur/usd would have been a winner today.
Unfortunately I didn't notice clear indications to go long.

What would I have had to notice?

MACD lower high?

Thank you.

Hello there, i see what you mean., i was actually long on Euro since yesterday. It was not on Macd signal but actually at retrace to 200 sma. I posted it earlier. Now my plan was to be part of a move up if this was a real break out., i enter at 1.3652 and 2nd lot at 1.3660. 2nd lot was opene at close of 1600 candle with price bouncing off 200 sma and macd in green. . Now i had my stop loss in place and let the trade run. Now also part of my plan was to close the trade manually if i see some changes happening before interest rate statement. so when i saw the huge drop in cable , looked at euro which was still calm since 45 min to its announcement i closed one lot at 1.3655 ( - 5 pips) since it was open at a higher price. now i was left with one lot so left it to see if euro would move before hte announcement. So i closed it when it reached the recent high ( trend line there ) at 1.3667 for +15 pips.Even if i had moved to BE i would have benn taken out. anyways, price did take a dip and now at current resistance 1.3709.
Now the question is what could i have done to stay on the game. If there was no important news today i would have just followed macd and price motion and kept my longs open;BUT with news as important as interest rate , it is hard to anticipate how the market will react espacially when the price has been ranging for the last couple of weeks. Trade well and pip plenty.
Nadia.

Hi everyone. I just papertested my first trade using this system.. and it was a loser. Can someone expliain why i thought this was a quick, aggressive reversal on the MACD.(or was i just very unlucky) I went short and got stopped out at about 45pips. Please see attachment.

thankyou for your responses.

James