4 Hour Strategy (MACD) | Page 635 | 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)

  • #12,681
  • Mar 10, 2008 8:39pm Mar 10, 2008 8:39pm
Quoting ira
Well indeed Mike your chart looks better than mine in terms of TC, but I wouldn't have taken it anyway. The reasons are: there is divergence, on Friday we had a tail to the up side and then long bearish candle right to the 21. That candle was a sign, it has engulfed seven bullish candles. Signal on MACD was marginal and on the opening of the week, plus price didin't close above resistance price level 1.5400. For me there was no real indication to go long except MACD signal.

I have decided to bring my two cents on this point, because that's the next stage of learning process. First when we start using Phillip's system we mainly trade RT and RB, as they are very easy to spot. Then when we feel enough pain from these losses we begin taking every TC the MACD shows us, presuming that trend is a friend. And it is really so!!! But... now I clearly see that there are periods of trend and consolidation, we all know about it, but do we really see it? Only lately I have started to recognize when there is really momentum and it would most probably continue. In the above example if there was a big bullish candle closing above 1.5400 level I wouldn't even think twice, I would go with the trend. Let the emotions (candles) guide us, and it will keep us out of many bad trades.
Ah said the blind man, blind man being me. I took the TC for the same reasons mike did. His chart is a little different from mine but the long bearish candle is the same and so is the divergence. I think I've discovered the holy grail... just do the opposite of what I've been doing. When I origonally looked at this method I thought this is going to be easy. Boy was I wrong. I'm going to keep trying 'til get this right. There is no way I'm going to give up especially with all of the support this tread provides. Thank for your help.
Raymond
  • #12,682
  • Mar 10, 2008 9:04pm Mar 10, 2008 9:04pm
Quoting Palmer
Just a note:

If you want to participate in the trade specific forum for the Market Rhythm 4 Hour Strategy please visit the website for the details....
this has been causing me confusion,kindly attend to it pls.I have live account but its in dollar.can i still trade the above pairs that have not dollar in it like EUR/JPY and the likes?thanks
  • #12,683
  • Mar 10, 2008 9:52pm Mar 10, 2008 9:52pm
Which by the way is why many traders don't hold positions through big news and over the weekend. The two times when a high percentage of the gaps will form (particularly over the w/end)


Quoting Nipper
Yes Rahim, That is exactly what would happen. Even if your stop was at 2.0154, you would lose an additional 8 pips and be taken out at 2.0162. I have had this situation happen with a gap news event. If it opened at 2.0262 (unlikely, but as example) you'd lose an additional 108 pips. You are not completely protected by a stop. Trade well! Trade cautiously!

Nipper
  • #12,684
  • Mar 10, 2008 9:55pm Mar 10, 2008 9:55pm
This is a question for your broker. But having a account in one currency doesn't prohibit any pairs. It's simply a matter of which pairs your broker offers....

Eur/Jpy = eur/usd times usd/jpy

Point is there is always a multiple of pairs that will get back to your native currency....

Hope this helps.
Eric


Quoting ayour2a
this has been causing me confusion,kindly attend to it pls.I have live account but its in dollar.can i still trade the above pairs that have not dollar in it like EUR/JPY and the likes?thanks
  • #12,685
  • Mar 10, 2008 10:38pm Mar 10, 2008 10:38pm
The pound is just about to close below the 21... we'll wait and see. I know the rule states that when the price breaks thru the 21MA it comes back to the 21 and then heads to the 89MA. Any thought from those with more experience?
Raymond
  • #12,686
  • Edited Mar 11, 2008 1:02am Mar 10, 2008 10:50pm | Edited Mar 11, 2008 1:02am
Quoting Morelands
The pound is just about to close below the 21... we'll wait and see. I know the rule states that when the price breaks thru the 21MA it comes back to the 21 and then heads to the 89MA. Any thought from those with more experience?
Raymond
Depends on whether it closes below the low of the previous two candles.

No trade
  • #12,687
  • Mar 11, 2008 2:31am Mar 11, 2008 2:31am
We had a TC on the 1Hr but the price found support on the 38 fib and weekly pivot.
Any thoughts?
Attached Image (click to enlarge)
Click to Enlarge Name: gbp.gif Size: 48 KB
  • #12,688
  • Mar 11, 2008 2:37am Mar 11, 2008 2:37am
Quoting Morelands
Ah said the blind man, blind man being me. I took the TC for the same reasons mike did. His chart is a little different from mine but the long bearish candle is the same and so is the divergence. I think I've discovered the holy grail... just do the opposite of what I've been doing. When I origonally looked at this method I thought this is going to be easy. Boy was I wrong. I'm going to keep trying 'til get this right. There is no way I'm going to give up especially with all of the support this tread provides. Thank for your help.
Raymond

Well done Raymond! Winners never give up, those who give up never win (Donna were that you who told me that )! I struggled hard too, but now I see things more clearly. Still long way ahead, too much to learn from Phillip, and he doesn't stop amazing me. By the way that video is a treasure!

Phillip have you got two other seminars she has mentioned ?
  • #12,689
  • Mar 11, 2008 2:51am Mar 11, 2008 2:51am
Took U/J long (GMT +3). This is a CT trade, but I like this particular set up, have found it very accurate in the past. Will explain why... We all know that at the end of the trend there is divergence, but divergence is not a signal, and we never know when it will play. I have noticed that the third or even the fourth HL or LH on MACD giving CT is usually a good trade to the 21. But again there should be something else, in this particular trade I have weekly TL, weekly IB and a morning star. But again it's risky as it's counter trend trade. Enter 101.97 - was conserned about price level. SL1 101.66, SL2 101.52, TP1 102.22, TP2 21 MA.
Attached Image
  • #12,690
  • Mar 11, 2008 2:59am Mar 11, 2008 2:59am
Quoting ira
Took U/J long (GMT +3). This is a CT trade, but I like this particular set up, have found it very accurate in the past. Will explain why... We all know that at the end of the trend there is divergence, but divergence is not a signal, and we never know when it will play. I have noticed that the third or even the fourth HL or LH on MACD giving CT is usually a good trade to the 21. But again there should be something else, in this particular trade I have weekly TL, weekly IB and a morning star. But again it's risky as it's counter trend trade. Enter 101.97 - was conserned about price level. SL1 101.66, SL2 101.52, TP1 102.22, TP2 21 MA.
Hi Ira,
Sorry,I didn't get what do you mean by:"the third or even the fourth HL or LH on MACD giving CT is usually a good trade to the 21"

What do you mean by 3rd or 4th HL or LH in Macd?
you mean the bars?

Thanks
Mike
Failure, is a wonderful teacher!
  • #12,691
  • Edited 4:40am Mar 11, 2008 3:19am | Edited 4:40am
I believe this is what ira mean. The picture is wrong, I should write HL (higher low)!
Attached Image (click to enlarge)
Click to Enlarge Name: lh.gif Size: 38 KB
  • #12,692
  • Mar 11, 2008 3:40am Mar 11, 2008 3:40am
Hi ira

That’s really interesting

I don’t trade UJ- for no reason other than I am sticking to GU and EU until I get a little more experience with the strategy

The more I read the comments from experienced traders like yourself and Palmer who have been involved in Phillip’s strategy from the early days the more I see that it blends a combination of different factors- there are no hard and fast rules with it such as “when the MACD turns green at this point do x”

The posts recently also seem to remain true to the original strategy rather than be added to and added to until they become distant from the original idea

Can I ask please:

1) the MACD seems to be a final confirmation point- rather than the first signal- and it may be as in the chart you have posted that it is the entry on the 3rd or 4th green bar that is taken rather than the 1st?
2) Candlesticks seem to feature quite often in the posts- I get the impression that these are a factor along with the MACD but not given priority?
3) If anything seems to form the “hub” of the system- its S/R and how price reacts to Moving Averages?
4) In terms of timeframes- the 4hour chart again is central but sometimes the 1 hour chart is used for entry. My understanding here is that entry on the 1hour where the set up is right, in advance of the MACD giving the signal on the 4hr is a matter of trading more aggressively to “catch the wave” a little early- but that the 1 hr timeframe is not used to trade on at first instance?
5) Re the different types of signals- the TC signal seems to be the most highly probable trade because its with the trend rather than trying to spot the RT/RBs?

I’ve undoubtedly asked more questions than I intended but would welcome some help!

regards,

Mark

(PS: Cool Avatar!)
  • #12,693
  • Mar 11, 2008 3:56am Mar 11, 2008 3:56am
Quoting Hookem28
Depends on whether it closes below the low of the previous two candles.

No trade
Could you explain a little further.
  • #12,694
  • Edited 4:27am Mar 11, 2008 4:05am | Edited 4:27am
Quoting mike1349
Hi Ira,
Sorry,I didn't get what do you mean by:"the third or even the fourth HL or LH on MACD giving CT is usually a good trade to the 21"

What do you mean by 3rd or 4th HL or LH in Macd?
you mean the bars?

Thanks
Mike
Mike I believe she means Higher Low and Lower High... this case it was a higher low
Now maybe you could tell me what she means by TL and IB
  • #12,695
  • Mar 11, 2008 4:16am Mar 11, 2008 4:16am
LH means lower high and is a macd pattern. If you are not familiar with this please read first pdf in post no. 1 on this thread. TL means trend line and IB means inside bar.
  • #12,696
  • Mar 11, 2008 4:21am Mar 11, 2008 4:21am
Just made a trade on EURUSD. TC on the 1hr. Buy at 1,5378. I waited for the price to go above 1.5375 (it also broke that double bar high resistance marked on rectangle). Closed for 26 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: euro trade.gif Size: 23 KB
  • #12,697
  • Mar 11, 2008 5:11am Mar 11, 2008 5:11am
I was watching to go long Eur/U when my 4hr candle closes in 2hrs above 1.5400 but I guess it would be a long candle with a huge SL.

Mike
Failure, is a wonderful teacher!
  • #12,698
  • Mar 11, 2008 5:21am Mar 11, 2008 5:21am
GU 4hr Strong buy signal forming there. Similar situation as EU 4hr chart, but I believe this one to be stronger. Wait for candle close.If I do take this trade I'd be worried about the size of the maribozu forming here-do I drop down to a smaller timeframe and enter there?? Or do I simply leave the trade and look for another opportunity later?Let's wait for candle close...roughly 40 minutes from now.
Attached Image (click to enlarge)
Click to Enlarge Name: gu 4hr macd.gif Size: 28 KB
  • #12,699
  • Mar 11, 2008 5:22am Mar 11, 2008 5:22am
If the SL is above 50 pips on euro I do not trade. And to enter when the market is in motion is a very risky business.
  • #12,700
  • Mar 11, 2008 5:22am Mar 11, 2008 5:22am
Quoting bisar_x
Just made a trade on EURUSD. TC on the 1hr. Buy at 1,5378. I waited for the price to go above 1.5375 (it also broke that double bar high resistance marked on rectangle). Closed for 26 pips.
I don't know what u close so early. That is exactly what I did too and later stay and watch EU flying. It really has rocket in the wing. Though, the channel is well defined. May be 1.5400 level make me to close so early.
THE DIFFERENCE BETWEEN GOOD AND EXCELLENT IS ATTENTION TO DETAILS.
4 traders viewing now