4 Hour Strategy (MACD)

The market looks like it is still in "sit and wait" mode. Nothing is particularly impressive to me at the moment (I'm w/Palmer...have had a great week so far and don't really feel like giving back to the market). Think we should get some direction w/IFO and Durables.....only time will tell!

And Nadia...LOL! Don't you love getting a lecture? Yikes!!!

And MKain...Did anyone ever answer your triangle question from awhile back? Saw it (had been wondering where you were, so was happy to see the post)...My answer...I wait for the triangle to break and then look for the retrace pattern/or failure.

Talk to you guys later,
Pips

PS...does this market remind anyone of last year's trading? Right before the huge Thanksgiving breakout?

Time to move stop........The dashed lines are 4 hr 8 and 21 ema

Nice Jim. I checked out the 15 minute chart on the USDCHF at 4:47 GMT (10:47 PM locally) and it looks like the move reversed right after you moved your stop.

Good work.

It will be interesting to see if the 61.8 fib line above the price and the dashed yellow 4hr 8ema will come together and if the price will have to test it..........Its like holding a carrot in front of a donkey. You know it wants to get it........pipip............. Jimdandy

Well that didnt take long, now, will it try for the 4 hr 21 ema dashed purple and trend line above? or back to the dotted 61.8 below? It could do both. London is opening.

What is it on this chart that tells you that this usdchf might actually start going Up? Do any of you newbies see it?........pipip

Bet you can see it now.........But it seems to be fading ......notice how the even 1.1700 acts as a support line..........Well i hope these past few posts have helped some get an idea of being able to tell where the market is going in order to put your stops out of the way and your profit targets within a reachable area.......you must keep extending those trend and support/resistance lines and plotting your Fibonacci. As you can see this is even possible on the 15 minute chart. Imagine how much more time you have to do this on a 4hr basis where it is much less hectic and much more reliable signals with less "noise". Good nite to all and thank you Phillip for having the heart of a teacher..........must catch some winks........pipip..........Jimdandy.

Hi JimDandy!

I quoted your post b/c I want to reference your chart that you use for it (the 1 hour divergence setup)...Are you looking at bullish divergence with your line? If so, there is a serious problem with it that you need to correct. The starting point on the MACD absolutely has to line up with the candle you start your support/resistance line from. By eyeballing your chart, it doesn't appear to be divergent on this time frame and area.

Happy Pipping to you!
Pips

EurUsd.

08:00 TC and retest of breakout level but res is at 4265-70. Monthly TL
just above. Possible 20pips to TL
12:00 No action

GbpUsd
08:00 Price running into res.
12:00 Price still at res level but morning star has formed off 21. If
breakout occur on news release and news support breakout then enter long
with tight stop inside res line

looks like i got my answer to the yen question, the trend line was a good point of support also price made higher low. reasons for not taking the trend continuation . could have taken it down to the trend line but then R:R was not ok.

Hey Nadia....I was just going to post the 4hr $yen chart. Price is at the 21 right now but the news in 20min may turns things wacky....waiting....

Hello all, was looking for the TC on the GBP/USD but was late when the signal was given. Then, I just sat on my hands.

The true beauty of this system is that when we begin to understand how the price move in relation to the different moving averages, round numbers, trendlines as support or resistance (motion of the market) and the signals given by the MACD patterns couple with candles patterns, we can really begin to make a more enlightening decision and we can decide to pass on a trade after a thorough examination of the setup if we don`t like it.

Really, by just taking only the high probability trade setups and having a clear and well informed choice to take the trade or jus pass it make the success of this method.

I do really think that ability to being able to just sit on the trade and do nothing is a great leap forward in one`s raod to be a consistent and a professional trader.

On top of that, seeing and backtesting this method along with reading all of the PDFs of Phillip and listening to all of his MP3 just reinforce one`s confidence and shows you that you can pass on a trade that you did miss or not get involved in it for any reasons and be ok with it because you know that there will be tons of other high probability trades coming in the weeks ahead.

This is just my little opnion for new people coming to learn this great method of Phillip. Just take your time to read all the PDFs of Phillip and listen to all of his MP3 in the attachments to the thread and take your time to sink in all these great informations and start to see the relationship of the price motion (price in relation to the moving average, round number and trendlines), the emotion (candles patterns) with the MACD patterns and you will be truly amazed what you can achieve.

Finally, as for me, this week I have 2 successul trades on the USD/JPY for 40 pips each and miss one on the GBP/USD this morning and I am very ok with that.

A great trading day to all

Sincerely

Sreem

This is a perfect post, Shreem. It's exactly what Phillip teaches us, and my thoughts on the matter are the same, but you did it succinctly.

Whoo hooo, my hard work is paying off (well not financially, but at least my results are getting better).

I looked over 8 Forex pairs last night, and decided there was only one trade forming. There were three potential trades that I would not have taken with real money, so I did not paper trade them. They looked good, but the signals that I have in my system (taken much from Philip in this thread) were not given.

I did take the EURUSD trade on a 4 hour time trame at 4:00 AM 10/25/2007 (according to my MT4 trader time, which I believe is +1 GMT). I would have bought in at 1.4264, set my stop loss to 1.4230, and my target to 1.4330. The signals were strong, and I found this morning I hit my target of 1.4330.

I should have taken a screen shot of the trade when I took it to show exactly what I saw forming. I will have to do that next time I feel this strongly about a trade (maybe tonight).

Did anyone take the short on the USD/CAD yesterday? I took it and made some pips. Once again i used the 1 hour to enter. On the 1 hour chart a triangle pattern was formed. I was expecting a TC or ZB on the 4 hour chart so i went short when the breakout occured on the 1 hour chart. I took one lot of at my first profit target and set the other lot to BE. My BE lot was stopped out but a total profit of 40 pips was the result..

Try to follow usd/cad could be a bit difficult because this pair follows oil price but this trade showed a nice 21 EMA bounce and posible TP at 0.9632 (former support line) good R:R. I don't trade this pair exept some news using Phillip's 1 minute entry.

Hello Alexfot, thank for the comment. But the thank should go to Phillip for sharing this great method which is so complete in itself to help anyone who has a truly strong desire to become successful in trading forex.

Why this method is so complete? Because 2 of the most important elements in any successful trading, which are 1) a clear and precise technical trading system based on a sound and straightforward vision of the market under the eye of technical analysis and 2) a strong psychological part which include how to define one RRR and how to approach the market in any given day if a trade is worth taking or not.

Phillip, by sharing with us this 2 great elements has achieved great deeds that I am sure that "Life" will give him back thousound fold for such a great and genuine dedication to help anyone sincere to learn his method.


As I am more and more understanding the different components of this system, I really am very much positive, enthousiast and happy seeing this thread growing and developping such a great community of genuine traders.

As a sum up, to help remind anyone and myself of the core "ingredients" of this system, we can categorize the system by these key concepts:

- trend definition with the 89SMA: where is the price in relation to it; under or above it.

- ranging market: when price is playing around the 89SMA for many days or weeks and the importance of drawing trendlines to get a channel or "playing field" as Phillip beautifully put it where we can define the boudaries for our trading.

- motion and rythm of the market: how is the price interacting with the 89SMA, 200SMA and the 21EMA, trendlines as support or resistance and round numbers.

- emotion of the market: how are the candles reflected around those moving averages, trendlines and round numbers? Are there any kind of candles pattern formation such as shooting star, hammer, railroad tracks, evening or morning star, tweezer top or bottom, ect...

- MACD pattern signal: Are the MACD signal given by one of his patterns is in alignment and harmony with the above conditions (motion, emotion, condition of the market (trending or ranging)? If yes, you surely can be looking for a high probability trade setup.

- Risk Reward ratio (RRR): How much are you prepared to loose or win in any given trade. Your RRR should not be below 1 to 1 on any trade. The critical and cardinal rule of never risking more than 3-5% of your total capital on any trade so that you can live another trading day. Are your take profit and stop loss placed around sound and logical places according to the current motion of the market so that you are not stopped out uncessarily.

I do certainely have miss a lot of key components of the major ingredients of Phillip method but, as of now, I see them as the critical ones.

Please Phillip or anybody else correct me if one of above statements are wrongly seen.

Again, thank you so much Phillip and all great contributors of this thread for this great method and community.

Sincerely

Shreem

Thanks Shreem, -- You've given me another piece of wisdom to put at my table so I can glance at it when I eat. I've copied the post and will put it with Phillip's MACD trade exercises and Pips' summary of how she analyzes the market before entering.
The best to you!

Hi shreem,

looks like you have squeezed the juice out of the system. keep up the good work, there will be more and more nice trades coming up if we are discipline to follow rules.

I think many of us make pips this week. Let's hope this carry on tomorrow and the coming week!!

Info