The question was asked, how do we use H4? The chart below illustrates the answer.
If one is a trend trader and looks at the long trends to be their guide then this would be a tempting short trade entry. Even our M5 trigger is indicating a short entry point. The H1 can pull you by the nose and say "follow me" because we look at that H4 way down there and expect everything to fall down before H4 can climb up.
In Predictive MTF Stochastics we are a little smarter. The M15 right now is flat and has risen with price since M5 has been building upwards. M30 is starting to curl over but it too is still up. H1 is a lagger...we are not following H1, we want H1 to follow us. H4..now there is a story.
The ideal position for H4 is up higher...we want M5 to lead the way. If M5 is going to start falling then where does H4 have to go? It is true that H4 could fall below 20%K and we could enjoy a nice down trend...but that is a risk. In Predictive MTS Stochastics we don't want any risks...we just want to make easy, reliable PIPS.
The H4 way down there is a warning, we know H4 will climb...it is a matter of when...not if. True, it might, may, possibly stick in the oversold and price might, may, possibly fall 500 pips...BUT it may also not.
Given where the other stochastics are we know they will fall, but they could also linger in the overbought area and pull the H4 up....that would kill us if we went short.
In otherwords, why guess? Let's wait and see and use our predictive skills to know what is going to happen.
How high do we want H4? There's no definitive number. It acts a bit like a guage but we have to use it in relationship to everything else.
What we always want to keep in mind is that we want to be building the H4 and not following where it has been.
So, in this position, I would not want to enter short here at this moment in time.
If one is a trend trader and looks at the long trends to be their guide then this would be a tempting short trade entry. Even our M5 trigger is indicating a short entry point. The H1 can pull you by the nose and say "follow me" because we look at that H4 way down there and expect everything to fall down before H4 can climb up.
In Predictive MTF Stochastics we are a little smarter. The M15 right now is flat and has risen with price since M5 has been building upwards. M30 is starting to curl over but it too is still up. H1 is a lagger...we are not following H1, we want H1 to follow us. H4..now there is a story.
The ideal position for H4 is up higher...we want M5 to lead the way. If M5 is going to start falling then where does H4 have to go? It is true that H4 could fall below 20%K and we could enjoy a nice down trend...but that is a risk. In Predictive MTS Stochastics we don't want any risks...we just want to make easy, reliable PIPS.
The H4 way down there is a warning, we know H4 will climb...it is a matter of when...not if. True, it might, may, possibly stick in the oversold and price might, may, possibly fall 500 pips...BUT it may also not.
Given where the other stochastics are we know they will fall, but they could also linger in the overbought area and pull the H4 up....that would kill us if we went short.
In otherwords, why guess? Let's wait and see and use our predictive skills to know what is going to happen.
How high do we want H4? There's no definitive number. It acts a bit like a guage but we have to use it in relationship to everything else.
What we always want to keep in mind is that we want to be building the H4 and not following where it has been.
So, in this position, I would not want to enter short here at this moment in time.