4 Hour Strategy (MACD)

I got 105 pips today on EUR/USD
Thank you Phil

Just a quickie on support:

Take a look at the 200 (aqua line) and the yellow support line I have there as well. Looking back, price came back to this area about nine times and failed to close beneath it. Yes, we are still stuck in a range and the 4hr rhythm is no flowing very well. But, if the support is there, as it has been,...support is there. This is where the 1hr entries can help. But, you have to drive home the fact that there is support on the 4hr and it has held. Yes, the news drove this thing up and some of us had luck on our side but the point here is 'support' on the 200. You have to see the 4hr picture to use the 1hr for an entry. Don't 'skip ahead', don't look for a trade, and don't think you have to be in a market just because you have an account. A lot of people are commenting that the market has no rhythm or flow right now...EXCELLENT! If you see that then you know not to trade and that's half the battle won right there. The 1hr entries are more aggressive and can be more difficult to see. Don't rush this. We all want everyone to end up positive. The rhythm, at least on the EU, is still 'in flux' and needs a few more days of movement to get going.

The worst part is that I watched this happen when I got up at 1:00am this morning but I got scared and let it go.

I don't know how to help this problem maybe I need to backtest a lot this weekend to get my confidence back.

I have only taken 1 trade this entire year and it was a TC but it happened to be at the end of a run so I got stopped out.

It has been slow this week, I made 300 per contract the 1st week, this week I have lost 2 and had 1 winner so down about 40 on the week. I know it works just when no strong trend it's hard to trade, I also missed a few because I have been going to the gym a lot more because the market is slow. It will get better always has.

Vette I am with you with the to get "my confidence back" part. I have come to the conclusion that this is not an easy system to trade. You really have to feel the market motion or be in tune with what's going on, something that I find hard to get a feel for. As much as I enjoy reading this thread and all the dedication and hard work that went in here, I know that its not an easy one to trade.

Looking back on a chart, its so much easier to spot good moves. That is always the case but in the heat of the moment its not such a natural thing to see the emotion and a possible good entry. I hope I dont sound negative here. I dont mean it that way, its just not so easy ( for me) .

Hats off to those who make good money using this system. Many a day I am thinking am I that dum that I dont see the trades as they unfold using this system or it it only the super bright who is seeing the good set ups? Trading in general is a hard thing to master to consistently make pips.

hi palmer
sorry but i cant really understand why u went long i saw ur describe about support levels but i think it still cant be reasonable,at least i think its not according this system rules, but it worked and even worked very very well. i should said well done to u and please describe more about ur trade because when i saw ur trade i tought u entered base on fundamentals but u said no

hi phillip
what u think about palmers great trade?he is in about 140pips profit now,is that according H4 rules?whould u did that trade if u were online on that time?

The thing that keeps me going is when I read back over the old posts from April and this Summer a lot of the people who are trading really well now were having the same problems I have. Nothing is easy in life but I found out if you work hard you will be rewarded.

vette:

Thanks for posting this.

About 12 years ago when I made my first trade I called my broker an it went something like the following: Insert nervous voice tone hear---"Buy one corn at 250"...

"What month?" asked the broker.
"Uh, June." I said
"Stop or limit order?" asked the broker.
"Damn..." I thought to myself....."What's the difference..."...I finally said..."The one where the price has to go through it to get filled..." I said like an idiot.
"Buy one June corn at a 250 stop.." asked the broker.
"Yes." Of course that's what I mean...

He puts the order in and hangs up.....I didn't put a stop loss in. Called him back and put a s/l in...nervous and green as the money I was about to lose. The best quotes that were free at the time that were on-line were 15 minutes delayed I believe. Online trading had barely begun. The internet had barely begun. I saw the delayed quotes ticking down against me. $50 per cent on a corn contract per bushel. It ticked down a few cents and I saw my money vanishing on a very small account back then, about a $1000 account. I was a wreck. That hot-flash feeling, nervous, why am I doing this...then the price started rising...7 cents above my buy order..up $350 wooohooo, this is easy and I got it made. I thought this thing was going to the moon on my first trade. Joy Joy Joy...Called my broker back because I thought I was going to bank 35% on my first trade...and the price was down again...After a few hours, yes hours (day trading corn???) I couldn't take it..sell it...Made about $20 on that first trade. The emotional roller-coaster of just that first trade, even calling in that first order was hell.

I'm not sure how long you have been trading but, from what I can tell you...it goes away. When I was playing baseball through high-school "the next level", I use to get nervous before that first at bat. During my junior year, it vanished. The nervousness of it all was gone because the routine was becoming normal. I knew what I had to do, I was prepared. It became natural..until I tore my rotator cuff, had two operations on my shoulder, and lost a baseball scholarship to a small school in Georgia, but that's another story...Anyway, being nervous is one thing, actually admitting it is another. That's admirable if you ask me. Over time with trading, at least this is where I am now with this, the nervousness is gone completely when I enter a trade. The emotional aspect of it is gone as well. We all want to make money and be happy about it but we all will lose money doing this also. What helps the nervousness go away is a few things: 1) Being comfortable with the method you are trading because it fits your trading style and life schedule, 2) Understanding the method you are trading because you can see the method in the charts, and 3) Being prepared if the trade goes for you or against you = you have your stops and take profit areas in place. Your post really set me back because when you see the "Hi, I'm new to trading and....". I start to think of all of the indecisions I made, trading just because I had to make a trade, the dwindling account syndrome and refunding it "I'm really going to do it correct 'this' time" episodes....and all that emotion is totally gone. Losing trades and winning trades, as far as the emotion is concerned is pretty much just gone. The winners look good in the account but I keep all the emotion in check because I know that there will be a loss at some point. Everything has to balance out with the emotions. I'm still holding one lot from this morning, 100 pips locked in, 142 floating, and I don't feel a thing. If it gets hit it gets hit. If it keeps moving up....I'll inch the stop up to see how much I can milk this for and that'll be it.

Being nervous is all part of it because it's your money and someone has the potential to take it from you. But again, this set me back because I realized how long it took to get rid of the emotion, how many years it took to get rid of the nervousness. There are a lot of people on the outside looking in..."I'm new and..." and have yet to go through the school of hard knocks, which they will, which I did, which we all did, but eventually graduated and found the way. That's the main reason I'm here and continue to maintain the website and add to it. To help and to give something back. I'm doing what I can with the free time I have and can put into this.

The nervousness does go away. It's the time that is needed that has to make it happen, that can't be rushed....

Hi all,
i would like to share how i see the 1hour chart in hindsight. the price came down through the 200sma and found support around 365ema. being in between these two moving averages price will oscillate and break one of them at one point of time. and the key was to position yourself for the breakout - one of the uses of the 1h. that being said there were 3 signals where you could have entered. i took the first one and lost 12 pips because that was my plan to close before the news. palmer took the third one and got lucky. if you took all three and managed them in a correct technical manner, all three could have been closed with profit.

as far as 4h is concerned the price could have gone either way. RB signal was OK, but there was no room left to the 21ema. only a strong close above 21ema would make a long trade possible and when it happened i ignored it because of the long candle. initially i favored a downmove and a break of 200sma but the TC signal never came.

the long red candle on the 1h that closed at the 365ema had closed below the 200sma on the 4h on my platform at that time and was a tempting sell signal. only the price was still above the previous low of 4638, but the 1h candle was very bearish itself. in order to be 99% sure about the continuation of the downmove, you should have waited for the true break of that previous low (also the 365ema on the 1h).

a breakout trade through the 200sma on the 1h was very hard to do today.

Good night, sleep tight!

Don't worry, I haven't taken a single trade yet (also due to time reasons though ) It will come. Patience.

OK here we go: the white vertical bar is the entry on both timeframes.

Again this is 50% 4 hour 50% 1 hour. I spend just as much time on the 1hr as I do on the 4hr. This is about after a year of being with this method, basically from the start of the thread. The 4 hour, price is above the 89, we are bullish. Yes, price has closed below the 21 and we are supposed to come back to it an then head down to the 89 but, look at the support on the 4hr at the 200. It's basically parallel with the yellow support line I have drawn. What has price done each time it came back to that support line? It failed to close below it. Look at that long red candle at the beginning, it slammed down and closed below it, then what? It came right back above the 21 and held there. It didn't head south = strength in the trend = UP. It closed below the 21 a few times, hit the 200 and came right back up to close above it....every time.

The 1 hour: A little more 'gut feeling', a little more trusting and knowing the 4 hour, a little more aggressive, a little more this is post number 1250 or something of mine on the FF, about 1000 that are in this thread. I have another yellow support line drawn where price came down to and failed to go down. The 365 also lined up with that support line. The long bullish candle back up...again from the support area...for ME, that's a buy. My initial targets were those tops...the blue line. Two lots were dumped there. This just happened to run and I ran with it.

I'd like to explain this with every trade, but again it's the time factor. There is a lot more to the 1 hour than just the 4 hour. I hope I'm not being too crass here but...it takes time to get this down, I've been here for a while, a year, and I guess I can see these things a little clearer.

As far as taking a profit goes: Knowing those before hand is critical. If there is no goal, no schedule...no plan of attack...don't push the button.

I hope that cleared a few things up.

Me need food now....

I almost took the fake out TC shown but market speed on the 21 kept me out.

Hi buddies, I have been observing this chance for 1 hour or so. Similar chance on EUR/USD and USD/CHF also, but NZD is the earliest one to show a red bar (not closed yet so could change). I think chance is also with AUD, but I dare not thinking about it because it looks pretty strong, and these will be CT signals and CT trades.

shine:

That's setting up as a Rt, correct. But, this has about almost 4 hours to go to complete the bar. This is a counter-trend trade in a strong market...



I must sleep now

HOHO thanks Palmer, that's why i picked NZD, 'cause it looks weaker than others. And I have 2 hour to go .... 'cause I am using a GMT+0 server .... and I am in China so no sleep for now .... good dream!

Hello Everyone,

Is there a daily version of the 4HR Macd system? I would love to be able to trade the 4hr but I can't. Are there any tips for the dailey chart?

Best regards

before you trading for daily u must learn 4hr macd system,learn market rythem,trendline,candle pattern,but in daily stoploss very big,so u must be carefull,just my opinion,thanks



"Together More Better Than Alone"

guys ,don't forget about ressistance/support,this signal tc but close on support,don't trade buy /sell near ressistance/suport,and don't forget about advice Mr.philip advice about sl,my observation sl over 50 pip very dangerous cause market correction,let price come to you,thanks


"Together More Better Than Alone"

Today i took a short @1.4811
SL @1.4821 and
TP @1.4771 which is resistance @21 moving avg.

The reason I took it because on 1HR had shown 2 evening stars on top, and that gives us a signal of reversal. MACD on 1HR also gave us short signal which is on the lower high.

But if we zoom out and look on 4HR there is no signal for us to enter a short yet, because the macd is not yet confirmed us to get on short. I'm just trying to get in the trade earlier.
Appreciate your comment on my trade.

EDIT: moved in SL to BE.

I took the TC on cable.
Entry 1.9573
SL 1.9605 (21 EMA on 1h chart)
1° TP 1.9545 (+28 pips) on descending TL
2° TP 1.9508 (+65 pips) on 1.95 support
I've already closed the position.
Thank you Phillip