4 Hour Strategy (MACD) | Page 412 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

4 hour strategy (the nausbot - 4 hour trader) 25 replies

4 Hour Strategy Macd+other Indicator 21 replies

X-1102 1 hour , 4 hour and daily Tf trades 7 replies

Create a verticle line at certain hour for every certain hour 16 replies

Is the "4 Hour Strategy (MACD)" the best system here at FF? 20 replies

Attachments: 4 Hour Strategy (MACD)
Exit Attachments

4 Hour Strategy (MACD)

  • #8,221
  • Nov 7, 2007 10:44am Nov 7, 2007 10:44am
Posted is my first trade with the system with the E/J pair. Took the short at 166.76 on a 3 bar round top, expected a bounce on the daily pivot was happy to see it go to the 21EMA. T/P at +41 pips. Feels like a good trade but I have only been demoing the system for the last two weeks and may have missed a few things... Any input would be very appreciated... Thx, 4xMike.
Attached Image (click to enlarge)
Click to Enlarge Name: FirstTrade1.GIF Size: 39 KB
  • #8,222
  • Nov 7, 2007 10:45am Nov 7, 2007 10:45am
Hi

Need a little help on interpetation. Looking at chart below. We now have a at(aggressive turn around ) forming. If this macd bar closes down could be indacation to take a counter trend trade.

The other option I see it you wait for a green macd bar to form after the red bar. Then this would inicate a tc (trend continue). My question is how to decide which to wait for??

Hope this makes sence.
Attached Image (click to enlarge)
Click to Enlarge Name: eur.gif Size: 50 KB
  • #8,223
  • Nov 7, 2007 10:48am Nov 7, 2007 10:48am
Info
Attached Image (click to enlarge)
Click to Enlarge Name: UsdJpy March Backtesting.GIF Size: 28 KB
Attached File(s)
File Type: zip UsdJpy March2007.zip   590 KB | 1,409 downloads
  • #8,224
  • Nov 7, 2007 10:59am Nov 7, 2007 10:59am
I just studied the 1H chart of the wedge breakout and see that the 1H did give a retrace and a TC to get on board. I could not watch the trades today due to working conditions.
Phillip
Attached Image (click to enlarge)
Click to Enlarge Name: 4 Hour Strategy.gif Size: 19 KB
  • #8,225
  • Nov 7, 2007 11:04am Nov 7, 2007 11:04am
JimTatum, I am new to all this, so my answer is probably not valid, but I want to stay active in this thread and keep my mind in the market as much as possible.

You are correct, if the MACD closes down it would show a possible trend reversal, but then if the next MACD bar is green again, then you went from trend reversal to a trend continuation.

From what I have read and understood, the MACD is used to confirm signals, but does not make up the entire system. So if you just had a bounce off of a Moving Average (especially the 21) or a recent trend line, then it would be a nice set-up for a trend reversal. It would show that you had met a possible resistence line and the trend is going to reverse back down to the 89 MA or to a lower established trend line area.

In the case of the chart you have attached, the USD is getting killed. There is no MA very close to where we currently are at in the price action (not to mention this will throw off the MA's for a while into the future). The best trade I could see here is going short (trend reversal) with the stop above the recent high (could be resistence). But this is not a high probability trade, because you are not boucing off of a MA, and with the USD getting killed we don't know if the previous high (resistence) is set in stone or not.

Basically the MACD gives a confirmation signal based on how the price is acting when it is close to MA's or Trend Linds.

I hope I am correct, if not, anyone feel free to correct me. I am just trying to stay involved.
  • #8,226
  • Nov 7, 2007 11:16am Nov 7, 2007 11:16am
Quoting unlv_tj
JimTatum, I am new to all this, so my answer is probably not valid, but I want to stay active in this thread and keep my mind in the market as much as possible.

You are correct, if the MACD closes down it would show a possible trend reversal, but then if the next MACD bar is green again, then you went from trend reversal to a trend continuation.

From what I have read and understood, the MACD is used to confirm signals, but does not make up the entire system. So if you just had a bounce off of a Moving Average (especially the 21) or a recent trend line, then it would be a nice set-up for a trend reversal. It would show that you had met a possible resistence line and the trend is going to reverse back down to the 89 MA or to a lower established trend line area.

In the case of the chart you have attached, the USD is getting killed. There is no MA very close to where we currently are at in the price action (not to mention this will throw off the MA's for a while into the future). The best trade I could see here is going short (trend reversal) with the stop above the recent high (could be resistence). But this is not a high probability trade, because you are not boucing off of a MA, and with the USD getting killed we don't know if the previous high (resistence) is set in stone or not.

Basically the MACD gives a confirmation signal based on how the price is acting when it is close to MA's or Trend Linds.

I hope I am correct, if not, anyone feel free to correct me. I am just trying to stay involved.
You are technically 100% correct. Emotionaly and fundamentally the mood might be still up. I will go short if the price stays above 1.4650 at close of candle(and MACD shows red bar) which will give my R:R to the 8EMA and the breakout line a 1:1. If it goes to the 21EMA it will probably within the wedge again and then we might see some down move. I will get to BE after 25gain on 50% and set the other 50% on 25 stop to break even when totally stopped out on second 50%. I have the advantage also to even close the second 50% on BE if it confirms a TC upwards and pocket 50% of 25gain and have the oppertunity to enter on TC upwards.

Dont worry about that gapup on my chart. I had data problems. Can someone tell me how to fix it. It seems to be only the 4H.
Attached Image (click to enlarge)
Click to Enlarge Name: 4 Hour Strategy.gif Size: 19 KB
  • #8,227
  • Nov 7, 2007 11:36am Nov 7, 2007 11:36am
Was just looking at the audusd....and noticed my trendline....its from the daily chart so now have 27 minutes to go on this candle...with engulfing candle , ....may have two red macd bars.....time will tell......now if i only knew what gold was going to do......will be hard to get r:r right from top of candle to 8 ema........comments anyone?.......
Attached Image (click to enlarge)
Click to Enlarge Name: to ct or not to ct.gif Size: 17 KB
  • #8,228
  • Nov 7, 2007 11:37am Nov 7, 2007 11:37am
The chatroom is full. Can only take 150. There are a lot not participating. How can I remove them from the chat. I dont want them off my contacts, but only off the chat.
Thanks
  • #8,229
  • Nov 7, 2007 11:41am Nov 7, 2007 11:41am
Just reached 150 votes with rating 4.9 out of 5.0
Thanks for the support and confidence
Phillip
  • #8,230
  • Nov 7, 2007 11:48am Nov 7, 2007 11:48am
Quoting Phillip Nel
Just reached 150 votes with rating 4.9 out of 5.0
Thanks for the support and confidence
Phillip
I wish I could get on to skype at work. Do you guys chat in the evening (midwest time, or say 12:00 GMT)?

I want to be around this as much as possible.
  • #8,231
  • Nov 7, 2007 1:03pm Nov 7, 2007 1:03pm
Hi all,

Just a quick question regarding stops.
Does anyone use the ATR as the sole decision for stop placement?(4HR chart)
Or are you looking at swing hi/lo on 4HR or lower time frame?
Just wondering what the concensus is really.

Regards,

Ed.

PS.I'm really enjoying the mp3 installments, really keeps the momentum of the thread going.
  • #8,232
  • Nov 7, 2007 1:09pm Nov 7, 2007 1:09pm
Hi ti all.

What does they think ?? fore short E\U
Attached Image (click to enlarge)
Click to Enlarge Name: EU.JPG Size: 62 KB
  • #8,233
  • Nov 7, 2007 1:41pm Nov 7, 2007 1:41pm
Quoting AlbyM
Hi ti all.

What does they think ?? fore short E\U
I'm looking at the hourly and there is no close beneath 1.4650, it sees to be turning to support, so my guess is no shorts above that level.
  • #8,234
  • Nov 7, 2007 1:49pm Nov 7, 2007 1:49pm
Could be a short but I don't want to use a 60-70 point stop, like to keep it around 40ish. Yes you can do a tigher stop but you have a good chance of it running the stops as it does most of the time.


Happy trading
Ryan
Keep taking CT trades, I need more money
  • #8,235
  • Nov 7, 2007 2:14pm Nov 7, 2007 2:14pm
Quoting Ted1983
Hi all,

Just a quick question regarding stops.
Does anyone use the ATR as the sole decision for stop placement?(4HR chart)
Or are you looking at swing hi/lo on 4HR or lower time frame?
Just wondering what the concensus is really.

Regards,

Ed.

PS.I'm really enjoying the mp3 installments, really keeps the momentum of the thread going.
Hi,

I use ATR(14)+20% to set my SL if I don't have trendlines or MA's for orientation.
I actually have backtested the last three months with pure MACD continuation patterns and a ATR based TP and SL, R:R always 1:1.
The result is roundabout 100 pips per month. Adding the market rhythm rules a lot more pips/month are possible, as we know.

Greetings
  • #8,236
  • Nov 7, 2007 2:18pm Nov 7, 2007 2:18pm
For those who have difficulty understanding spoken English. Go to post 8224 for the chart.

I would like to let everyone know that Ashes has joined our group of copiers and has already copied three mp3's. Thanks Ashes!
Attached File(s)
File Type: doc Phillip Nel USDJPY March2007 Back Testing 7Nov2007.doc   6 KB | 552 downloads
  • #8,237
  • Nov 7, 2007 2:24pm Nov 7, 2007 2:24pm
Quoting Phillip Nel
Just reached 150 votes with rating 4.9 out of 5.0
Thanks for the support and confidence
Phillip
Hi Phillip,
I think I missed something... but if it is a vote about you or your system I say 10.0 (if maximum is 5.0) eh eh eh...

Apart from jokes I found here, 4h MACD system, my "Holy Grail". Thank you!

Giorgio.
  • #8,238
  • Nov 7, 2007 2:32pm Nov 7, 2007 2:32pm
Quoting AlbyM
Hi ti all.

What does they think ?? fore short E\U

yeah PROFIT HIT
  • #8,239
  • Nov 7, 2007 2:40pm Nov 7, 2007 2:40pm
I've just now been able to sit down at work some 7 and a half hours later. But, I had time to look at the E$ at lunch. I entered one lot thinking in terms of an aggressive turn-around from the China Spike and again on a sell limit order to reduce the risk. The first target at the 8ema just got hit. I'm 50/50 on a move to the 21 but we'll see. Tightening things up from here though because of all the news with this. I'm out the door again...back later...
Attached Image
  • #8,240
  • Nov 7, 2007 2:48pm Nov 7, 2007 2:48pm
Quoting AlbyM
yeah PROFIT HIT

Nice job, just too big of a stop for me, not risking my month's gains.
Keep taking CT trades, I need more money
46 traders viewing now