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4 Hour Strategy (MACD)

  • #15,741
  • Jun 26, 2008 3:26am Jun 26, 2008 3:26am
Quoting napeharm
I am glad you are reading the thread through. I had to read 900 pages, but its well worth it as it gets your mind around what is being traded here and how. It is the only way really, so good luck with that!!.


This is Phils template which has been posted several times now. It shows all the 4hr moving averages. If you load this it will show you what you want to know. Be aware also that alot of people here use a MIG mt4 platform because Phil uses it and we are all therefore on the same playing field. There are some platfroms using servers which do not count a weekend/Sunday bar and this will greatly affect the position of the moving averages on the longer time frames. I cant recall if IB uses a weekend bar but its worth checking so that you are reading charts that most people here use. It saves alot of confusion.

Meanwhile the Euro took a trip back to the 8ema and the upper trendline it broke last evening after interest rate news. I made +37 there on smaller time frames.
Did you use the 5 min time frame? I did not see it on the thread. I was watching but did not take it. Would you explain. If you use the 5 min, I'll watch for your post there.
Raymond
  • #15,742
  • Jun 26, 2008 3:40am Jun 26, 2008 3:40am
Quoting Morelands
Did you use the 5 min time frame? I did not see it on the thread. I was watching but did not take it. Would you explain. If you use the 5 min, I'll watch for your post there.
Raymond
That was a 5 min time frame trade. I dont use Phils 5 min method so i wont be posting anything on that thread. I have traded 5 mins for 3 1/2 years so have developed my own understanding of trading that time frame.


When i began posting here i believed that the 4hr method would take over my trading and would be the only thing i used. However, as many are aware, when there are few continuation signals people are left on the sidelines twiddling their thumbs and becoming frustrated. So i simply carried on trading 5 mins and realised most of my gains were from there anyhow.

However ,the 4 hour method has benefited my trading greatly but has become an integral part of it rather than trading it by itself. Really trading is 'one thing' rather than trading differant time frames, in the end its just 'trading', if you understand me. So the distinction is not really relevant to me, whether its 4 hrs or 5 minutes. One helps the other but is part of one understanding, and this is how it should be i feel.

Because so many of my '5 minute trades' dont correlate any longer with the 4hr system, certainly not consciously on my part, i dont post them here.
  • #15,743
  • Jun 26, 2008 4:01am Jun 26, 2008 4:01am
Quoting napeharm
I am glad you are reading the thread through. I had to read 900 pages, but its well worth it as it gets your mind around what is being traded here and how. It is the only way really, so good luck with that!!.


This is Phils template which has been posted several times now. It shows all the 4hr moving averages. If you load this it will show you what you want to know. Be aware also that alot of people here use a MIG mt4 platform because Phil uses it and we are all therefore on the same playing field. There are some platfroms using servers which do not count a weekend/Sunday bar and this will greatly affect the position of the moving averages on the longer time frames. I cant recall if IB uses a weekend bar but its worth checking so that you are reading charts that most people here use. It saves alot of confusion.
ok I should look into that, it would be a shame to imagine that IBFX platform would render a uniquely different result as to this trading method, but again are the moving averages applied to the close? thx
Trade Like a Robot make money Like a Bank
  • #15,744
  • Jun 26, 2008 4:14am Jun 26, 2008 4:14am
Quoting raz
ok I should look into that, it would be a shame to imagine that IBFX platform would render a uniquely different result as to this trading method, but again are the moving averages applied to the close? thx
Yes.
  • #15,745
  • Jun 26, 2008 5:11am Jun 26, 2008 5:11am
I missed the TC on G/U this morning and for no other reason than it hadn't broken the 1H trend line. I also havent taken the TC on E/U as this has moved too fast and created a very large stop. I was considering taking the pullback but I think it has moved on too much to do this now (just my opinion).

So anyway nice trades for those that took them. Not so nice for those watching them and kicking themselves.
  • #15,746
  • Edited 11:59pm Jun 26, 2008 5:33am | Edited 11:59pm
Will give Mp3 tonight

Edit 1
Closed 50% after 25pips. Set remainder at BE and 50trailingstop.

Edit 2
Top TL reached. Close remainder at 1.5750

Total gain (25+63)/2 = 44
Attached Image (click to enlarge)
Click to Enlarge Name: EurUsd.GIF Size: 61 KB
  • #15,747
  • Jun 26, 2008 6:21am Jun 26, 2008 6:21am
Quoting Palmer
Hey Copino. I'll answer some of this and I'm sure Phillip will add something as well. There are times when the 4hr/1hr is setting up for an entry either off of a trendline, s/r area, etc. and I'll refer to the 5min but only if the 4hr/1hr is a high probability entry where the 4hr rhythm is strong and price is approaching the 21 or another movavg that it has bounced off several times in the past. When referring to the 5min it's important to keep in mind that you are not trading the 5min but using it to enter on a longer term chart. What this means is you have to know the 5min just as well as you know the 4hr method. When is the 5min trend changing or flattening out? A losing trade on the 5min does not necessarily mean that the trend is changing direction on the 4hr. The 5min can be very quick for profits, within the same bar sometimes and there are 48 price bars on the 5min per every 4hr price bar, that's a lot of info to digest to get in early. This is why it's best to use the 5min (or any other lower timeframe chart) only for high probability set-ups on the longer term charts. I like using the 5min to get in on s/r breaks on the 1hr only if the break is in the direction of the 4hr rhythm...only in the direction of the 4hr rhythm.

Hope some of this helps.
Hi Palmer,
thanks for your reply.You made it much more clearer for me and probably for some newcomers.I am just little bit confused using those system to confirm signal on 4hr MACD system, so i stick to using just 4hr MACD for now.
Also do you use, or anybody else, another currency pair to confirm 4hr MACD ? Just curious.
Thanks and wish fresh pips+
  • #15,748
  • Jun 26, 2008 8:55am Jun 26, 2008 8:55am
Nice trade Phillip.
That was really a nice setup.
Your TL doesn't have any touches. I'm curious why you drew it that way.
Good pipping week for those with patience.
Attached Image (click to enlarge)
Click to Enlarge Name: eur 627.gif Size: 34 KB
  • #15,749
  • Jun 26, 2008 10:03am Jun 26, 2008 10:03am
Quoting Copino
Hi Phillip,
I am going through this thread from beginning (currently on page 130) looking for support and resistance.I like support and resistance confirmed by MACD to enter trade.I am curious if you use just trendlines, ema's, sma's or also use another system (like yours 5 min MACD or 1 min news) to support entry on 4hr MACD ? Or another pair ? I think it's good to have external support, like another system or pair to enter, for example when i am entering eur/usd trade i look to find some support in usd/chf (which is moving in opposite direction like eur/usd).
Sorry if my question looks stupid for some longterm participants of this great thread, i am newbie at forex.Also thanks Phillip for sharing your knowledges and experience with us.
Hi Copino!

Welcome to the thread! You have received a very good answer from Palmer, and yes, you will see as you progress through the thread that price action and technical support and resistance are critical factors in this system. Price action is considered in relationship to the market motion (rhythm) w/Macd acting as a secondary confirmation. Like Palmer, I too only use smaller time frames to trade in the direction of the 4 hour trend if trying to fine tune my entry w/a smaller stop.

Also, I see you are a newbie at trading -- work hard in the beginning on your discipline and trading rules. Really study how the market moves in relation to support and resistance and how it can dance around and within the MA's. Spend the bulk of your time in the beginning on backtesting and practicing trades (keep real money out of the mix if you can for now -- or use a very very small part of your capital in a micro account to get the feel for live trading). You will be rewarded hansomly further down the road by taking these difficult steps early on.

Wishing you all the best trading has to offer!
Pips
  • #15,750
  • Jun 26, 2008 10:04am Jun 26, 2008 10:04am
what means TL please!! i know tc and rb and so on but tl?
  • #15,751
  • Jun 26, 2008 10:07am Jun 26, 2008 10:07am
Quoting zaq464
what means TL please!! i know tc and rb and so on but tl?
TL = Trend Lines
  • #15,752
  • Jun 26, 2008 10:13am Jun 26, 2008 10:13am
Hi All!

Thank you soooooo much for the warm welcome back! I really admire this community and am thankful to be part of such a supportive group!! You all humble me

Thank you Phillip, Nadia, Mike, Ira, Saka, and the mighty B for your posts -- and Palmer -- especially Thanks for Cartmen!!!! You know how I love that little monster LOL!

I am currently changing over to MT platform and may take a few days to interact intelligently w/you all -- need to get my analysis back up. Also, I may be a bit sparadic in my posting for the next 6 weeks b/c I have some business to finish in CA during the last half of July (just a heads up that I won't be around for 3 weeks or so) and I really am trying not to let trading dominate my life anymore (YIKES!).

With all that said -- I look forward to being the annoying poster of yore w/a few new twists and insights (hopefully) -- especially regarding harmony and patience (this is what I have been working dilligently on for the last few months).

Happy Trading!

Your friend,
Donna
  • #15,753
  • Jun 26, 2008 12:54pm Jun 26, 2008 12:54pm
Read this together with post 15746
Attached File(s)
File Type: zip Daily Wrapup 26 June2008.zip   818 KB | 1,313 downloads
  • #15,754
  • Jun 26, 2008 1:28pm Jun 26, 2008 1:28pm
Phillip,
Sorry about the confusion. I didn't click on the chart to magnify it, and I couldn't see the wick that touched your upper TL on the 4 Hour chart. Guess I need to visit the eye doc.
:nerd:
  • #15,755
  • Jun 26, 2008 1:50pm Jun 26, 2008 1:50pm
Quoting Hookem28
Phillip,
Sorry about the confusion. I didn't click on the chart to magnify it, and I couldn't see the wick that touched your upper TL on the 4 Hour chart. Guess I need to visit the eye doc.
:nerd:
No problem.
  • #15,756
  • Jun 26, 2008 4:31pm Jun 26, 2008 4:31pm
hi guys,

do you plan to set up some chat room to talk before taking real trades? or may be there is already such a place?
  • #15,757
  • Jun 26, 2008 5:13pm Jun 26, 2008 5:13pm
I am not looking to take live trades just yet, but I see a possible RT on the EUR/USD, is anyone else seeing this too at this moment?
Trade Like a Robot make money Like a Bank
  • #15,758
  • Jun 26, 2008 6:25pm Jun 26, 2008 6:25pm
WHOA WHOA, I AM GETTING EXCITED OK OK, I know I am new and all, but I see some round toppage on both the E/U and G/U. I know I am new and all, but if it closses like that would these be valid short signals? And if they are, for how long on :take profit and stop loss. Or do you just filter them right out, and for what reason?

I want to learn, and I am a very patient person. I want to remain here forever, not just for a few weeks, I mean like forever. So get used to me being here. I gave myself a migrane because I have read so many posts on this single thread, but I want to really want to grasp it. I have been studying the E/U, G/U, U/C, U/J for the last 1.5 years. Very familiar with the majors and I don't plan to trade anything else. However I have switched my demo account to MIG, so I can be on board. Please if there is anyone out there to view this, just let me know your honest thoughts.
Trade Like a Robot make money Like a Bank
  • #15,759
  • Edited 7:36pm Jun 26, 2008 7:28pm | Edited 7:36pm
Quoting raz
WHOA WHOA, I AM GETTING EXCITED OK OK
Easy my man, we all see the same thing. The real resistance is at 1.5805 EUR/USD.... the GBP/USD looks ok.
  • #15,760
  • Jun 26, 2008 7:29pm Jun 26, 2008 7:29pm
Quoting raz
WHOA WHOA, I AM GETTING EXCITED OK OK, I know I am new and all, but I see some round toppage on both the E/U and G/U. I know I am new and all, but if it closses like that would these be valid short signals? And if they are, for how long on :take profit and stop loss. Or do you just filter them right out, and for what reason?

I want to learn, and I am a very patient person. I want to remain here forever, not just for a few weeks, I mean like forever. So get used to me being here. I gave myself a migrane because I have read so many posts on this single thread, but I want to really want to grasp it. I have been studying the E/U, G/U, U/C, U/J for the last 1.5 years. Very familiar with the majors and I don't plan to trade anything else. However I have switched my demo account to MIG, so I can be on board. Please if there is anyone out there to view this, just let me know your honest thoughts.
Hi Raz,

I haven't updated my TL's so I can't be accurate/specific at the moment w/price levels, but I according to the candles on my chart, Fiber looks to be trending upward and the MACD has not started to round yet (and a stop for a short should be above .5843 (high from 06/09) or .5878 (TL upper). Levels are oversold -- but we may see a consolidation before another push up (the MA's on my chart are in perfect order since yesterday; read trending up). The current candle is near the high of the last and we are in quiet Asian session. If you do get confirmation for a short (say price fails at .5766 and candle is bearish and MACD confirms -- plan for your stop to be at least .5780ish (risky level -- .5843ish better but high risk!) manage the trade closely. You should wait for the current candle to close and look for confirmation of price failure with the next candle. Cable could set up for a short range play -- again you may need to wait for this candle to close and confirm w/hourly or next 4 hour candle (and remember London won't be online for another 5 - 6 hours). Be patient and wait for confirmation before entering.

Hope this was somewhat helpful.

Best,
Pips
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