4 Hour Strategy (MACD)

I am using this 4 Hour strategy only for the last month(Jan2007) as I have papertraded for 2 years trying everything and or system I could find. (I am trading equities for almost 10 years)I have decided that I will only go live(after some losses-not to serious) after I have studied the field of forex and are satisfied that I have a system that works. I do believe that we are trying to make it to impressive and difficult. This system is simple and easy to understand. I have backtested and forward tested it over more than 200 trades and it gives 300+ pips per month. I never had more than two(four max.) consecutive losses. I never use a stoploss bigger than 50. There are enough chances to ignore the ones bigger than 50.(The stoploss situation has changed as the market volatility has increased a lot over the years. Stops can be up to 100 pips currently 2011)

I am using this strategy only on the EurUsd and the GbpUsd. Have not tested it on other.
I hope that you will find some use for it and that it put you on the road to financial independence.

For a video on Youtube about the Market Rhythm follow this link

Is this strategy still working (Feb2012)...............................................Page 1654 Post 24801

This is my list of major pdf's and mp3's from this thread.

TITLE................................... ................................... ..............................PAGE........POST

BEFORE GOING ANY FURTHER, PLEASE GO TO PAGE 681 POST 10212 AND PAGE 870 POST 13038 AS WELL AS PAGE 742 POST 11119 AND LISTEN TO "THE HEART OF THIS SYSTEM" AND SAVE THAT GRAPH. THEN GO TO PAGE 289-290 POST 4335 AND STUDY THOSE 13 LESSONS BY HEART. THEN START AT THE BEGINNING AND ESPECIALLY THE LIST OF INFORMATION BELOW.

For those understanding my English with difficulty go to Page 682 Post 10227 for a written copy of "The heart of this system"

TITLE................................... ................................... ..............................PAGE........POST

INTRODUCTION FOR ALL NEWCOMERS .........................................................1035 ......15519
____________________________________________________________________________________
Market Rhythm 4 Hour Strategy.doc ..........................................................1219 .......18274
___________________________________________________________________________
4 Hour MACD Forex Strategy.pdf ................................... ................................1.. ...........1
Planning your Trade.pdf.......................... ................................... ..................1..............1
Consolidation Management.pdf..................... ................................... .............15...........215
Clock_v1_3.mq4..................... ................................... ................................28. ..........410
MACD_H4_300_v100.mq4............... ................................... ..........................31....... ....461
Trend trading with MACD.pdf........................... ................................... .........32...........468
Setting up MA and MACD.pdf........................... ................................... .........43...........639
The question about papertrading.pdf................... ................................... .......48...........713
Presentation1.pdf.................. ................................... .................................54 ...........797
woodchuck.pdf...................... ................................... .................................60 ..........890
Breakout Positioning.zip (graph post 1130).............................. ........................76......... 1130
Euro Trendline.zip (graph post 1159).............................. ................................78. ........1159
MACD Signals.zip (graph post 1166).............................. .................................78 .........1166
Market Rythm AudUsd.zip (1197)............................. ................................... ...80.........1197
1Hour Strategy.zip....................... ................................... ............................92..... ....1372
1 Hour Strategy.pdf....................... ................................... ..........................92....... ..1372
1Hour Strategy 1.zip.............................. ................................... ..................98.........1456
1Hour Strategy 2.zip.............................. ................................... ................103..........1535
1Hour Trendcontinue Patterns.zip....................... ................................... ......145..........2165
Stoplosses.zip..................... ................................... ..................................1 53..........2281
Three little sisters.zip (graph post 2287).............................. .........................153....... ..2287
Pivot Auto.mq4........................... ................................... ..........................198...... ....2970
MACD_Colored_v103.mq4 + word file............................... .............................223... .......3342
Breakeven.zip (graph post 3748).............................. ................................... 250..........3748
FiboPivots4HMACD.mq4............... ................................... ...........................270..... ......4043
4Hour and 1Hour Supporting Signals.zip (graph post 4063).............................. ..271..........4063
4H calculation spreadsheet.zip.................... ................................... .............273.........4095

13 lessons
L1 Introduction.zip................... ................................... .............................290... .......4336
L1 Introduction 1.zip.............................. ................................... ...............290..........4336
L2 Tsunami.pdf........................ ................................... ............................290.... .......4337
L2 Tsunami.zip........................ ................................... ............................290.... .......4337
L3 Tecnical vs Fundamental Analysis.zip....................... ...............................290. ...........4338
L4 Market Rhythm Part 1.pdf.............................. ................................... ...290............4339
L4 Market Rhythm Part1.zip.......................... ................................... .........290............4339
L4 Price Motion 2.zip.............................. ................................... ..............290............4340
L4 4Hour and 1Hour Supporting Signal.zip......................... ............................290.... .......4340
L5 Drawing Trendlines.pdf..................... ................................... .................290...........4341
L5 Drawing Trendlines.zip..................... ................................... .................290...........4341
L5 Trendlines.zip..................... ................................... .............................290... ........4342
L6 Market Emotion.pdf........................ ................................... ..................290...........434 3
L6 Market Emotion.zip........................ ................................... ...................290...........43 43
L7 Flight Preperation.pdf.................... ................................... ...................290............4 344
L7 Flight Preperation.zip.................... ................................... ....................290...........4 344
L8 Anatomy of a Trade.pdf.......................... ................................... ..........290...........4347
L8 Anatomy of a Trade.zip.......................... ................................... ...........290...........4347
L9 Major MACD Signals.pdf........................ ................................... .............290...........4348
L9 Major Macd Signals.zip........................ ................................... ..............290...........4348
L10 Exercise MACD1.pdf.......................... ................................... ..............290...........4349
L10 Exercise MACD1.zip.......................... ................................... ...............290...........4349
L11 Trade Example.pdf........................ ................................... ..................290...........435 0
L11 Trade Example.zip........................ ................................... ...................290...........43 50
L12 Papertrading.zip................... ................................... ...........................291..... .....4351
L13 Conclusion.zip..................... ................................... ............................291.... ......4352

Rhythm, Motion and Emotion Explained ..........................................................791..........11852

Study by Hart.zip (graph post 4496).............................. ..............................300.. ........4496
4h MACD price movement rules.doc.......................... ................................... 301..........4504
Range Bound Rhythm.pdf......................... ................................... ...............304..........4549
Range Bound Rhythm.zip......................... ................................... ................304..........4549
Breaking down Motion from Monthly to 4Hour.pdf.......................... ..................304.........4551
Breaking down Motion from Monthly to 4Hour.zip.......................... ...................304.........4551
Not to be wiped out early.zip.......................... ................................... .........328.........4911
Which way is the trend.pdf.......................... ................................... ............329.........4934
Which way is the trend.zip.......................... ................................... .............329.........4934
Normal retracement strategy.zip....................... ................................... .........344........5155
Pulling the Trigger.zip........................ ................................... ......................376........56 27
Emotional Triggers.zip....................... ................................... .......................376........5 629
Phillip Nel- Three Little Sisters- written copy.zip........................... ...................394........5910
Lessons 1 to 7.zip.............................. ................................... .....................395........592 5
Lessons 8 to 13.zip............................. ................................... ....................396........5926
Risk Management 1.zip.............................. ................................... ...............396........5927
Risk Management 2.zip.............................. ................................... ...............396........5927
Phillip Nel- Risk Management 1- Written copy.zip........................... ...................397........5943
Phillip Nel- Risk Management 2- written copy.zip........................... ....................397.......5946
Phillip Nel- 1Hr Supporting 4Hour- 4June2007- written copy.doc........................... 458.......6862
1Hour Supporting 4Hour.pdf.......................... ................................... .............458.......6862
Phillip Nel- StopLosses- 11Mar2007.doc...................... ................................... ..494......7399
Landing the Profit.zip (graph post 7415).............................. ............................495.... ..7415
Phillip Nel Landing the Profit.doc......................... ................................... .........499......7485
Breakout.zip....................... ................................... ................................... .501......7513
Breakout trading.pdf........................ ................................... .........................501......7 513
Phillip Nel- Breakout Trading 18 Oct2007.doc........................ ............................502.... ..7519
Range Bound Trading.pdf........................ ................................... ...................535......8013
Range Trading 1.zip.............................. ................................... ....................535......8013
Range Trading 2.zip.............................. ................................... ....................535......8014
RangeTrading_1_and_2.doc........... ................................... .............................535... ...8020
Knowing the System.zip......................... ................................... ....................538......8065
Knowing the system.doc......................... ................................... ...................541......8103
Planning Your Trade.zip (graph post 8349).............................. ..........................557...... 8349
Phillip Nel Planning Your Trade Post 8349 Page 557 9Nov2007.doc....................... ...558......8368
4h_MACD_FX_Strategy_Locked_TF.mq4.. ................................... ......................576......8628
Money_Management_Eng.xls........... ................................... ............................610.... ..9139
Position Calculator.xls..................... ................................... ...........................610..... .9148
Trailing Stops.zip.......................... ................................... ............................636.... ..9535
Temp.zip........................... ................................... ................................... ...640......9587
Trailing stop post 9535.doc........................... ................................... ..............640......9592
Temp 17December 2007 post 9587.doc........................... .................................64 1......9612
PhillipNel Lesson4 PriceMotion2 Post 4340.doc........................... .........................644.....96 54
PhillipNel 1Hour Supporting 4Hour Post4063 Page271.doc........................ .............648......9709
candlesticks.zip................... ................................... ................................... ...650.....9736
Large Candle Entry Spread.zip......................... ................................... .............651.....9760
PhillipNel Emotional Triggers written copy post 5629 page 376.doc...........................6 51....9764
PhillipNel LargeCandle Entry Spread page 651 post 9759 21Dec2007.doc....................652....9771
Market Volatility By Rebecca..............................................................................859....12884
Positional Trade ............................................................................................1035 ...15521
Gap Trading on Sunday Nights .........................................................................1133....16988

EDIT: For a summary of the 4 hour system go to page 289 Post 4335.

Thanks for posting your system. I am relatively new at this, so I will have to look it over a few times to be able to recognize entries. The conistent volume of pips is encouraging.

That is what everyone should do. Go to history and look at the MACD till you see the motion and the setups.

Very nice Phillip. Well thought out, well documented. Thanks for the time and info.

Phil
Thanks for sharing you have put alot of work into this method I will try this out and let you know how I get on
Thanks again
Sam

This is the most detailed and specific trading strategy I have ever read after a year of reading and study. This is very practical and helpful. Thanks for sharing your strategy.

Phil,

Thanks for sharing your system. Please comment on how the MACD levels (horizontal lines) relate to the MACD patterns you act on. Do the patterns have to reach certain MACD levels to be valid, etc.? Also, do you enter with a fixed SL and then adjust it as the trade progresses? Thanks.

Thanks for sharing this strategy it looks very promising, and keep up the good work. I am grateful.

Hi Philip,

I have just recently seen something like this on foex factory, so it looks that guy and yourself are onto something here!!

Great post and thanks for writing up the very detailed and thorough documentation !!! Makes it so much easier to understand than just saying my strategy is to enter a trade when x crosses y etc...

All the best with your trading and when you go live, keep us updated !!

Anthony

Thanks a lot, it seems to be interesting. I'm gonna try it.
Kamil007

Phillip, thanks for sharing your stategy...I found it most informative

Thanks for all of your hard work. I love the Macd. And I do think that you see it exactly the same way I do. I have a day chart setup and it seems to work pretty close to what you are doing with the 4 hour charts. I am looking forward to seeing more of this system as time goes on.

DC

I am new to Forex Factory and have only been trading the news up to this point. I am finding all of these trading systems fascinating and look forward to giving them a try. Thanks for this!

Phillip Nel, Looks like a nice strategy you have there. I was reading through your docoment and had just one question for you. On page 18, you mentioned that "you only trade the trades that give signals at 1700, 2100 and 0100(GMT +2)." Could you convert that into U.S. EST? My math says that's at 10am EST, 2pm EST and 6pm EST...is that correct?

Thanks!

Philip,

Very interesting cause I haven't pay much attention to MACD. But I like the 4hr time frame cause it fits my trading style.

Very detail documentation and easy to undertsand.

Wish you all the best.

Those times are correct, and switch to be 9am, 1pm and 5pm EST under DST (Daylight Saving Time).

The horizontal lines is just there to show overbought and or sold levels especially on the EurUsd. Sometimes the movement is close to the zero and within the fisrt MACD zone. I only use it as benchmarks as to where the MACD are at the moment. If one zooms in then you dont loose sight of the position of the MACD.
The MACD does not have to reach certain levels. It is only when it zig zag accross the zero that one must be carefull but it happens when the price is in a narrow channel waiting for a breakout.
Stoploss is set at the most resent high or low or at least two bars away. Do a bit of backtesting to get the feel for it. I try not to use equal numbers like 30, 40 etc. I rather use 33, 43 etc. Equal numbers seem to be sometimes the target . Stoplosses also depend on the capital and risk profile of each individual. It is with what you are comfortable with but at least out of the way. Because this strategy normally preduces a move right after the entry the stoploss dont have to be big.

Thanks

Very cool, thank you very much for posting this. I have a question.

1. How long do you usually hold a position??

Thanks Phillip for your system and detailed explanation.

I'm still digesting your stuff and glancing at my charts.

Will fire my questions soon if there are any. Thanks.