4 Hour Strategy (MACD)

Just broke the H4 50 fibo and looks like it is going to test the daily 61.8.


Will probably take the long if everything looks good or watch the retracement for a short.

looks like we are trapped between the Daily and H4 fibo.

Eurusd and gbpusd is in ranging mode.
No rhythm at the moment. Thats it for this week.

just something not related to macd, but pound usd just now hit one of the resistance at 1.6464 then go down the 8ema

Hi Jinsen and Everryone,

I have been a reader of this thread for many months, you guy's posts have been really helpful.

Recently, many pairs are in range modes, many of my trades failed due to it.

I have some questions for this condition, if anyone would care to answer.

1. What do you think is the cause of this, seasonal (summer) or the market is on a major turning point ?

2. What indicators, beside mva lines, you use to determine if a pair is in or out of the range mode?

3. Do you trade during range mode ? if you do, how you determine the entry and exit point ?

I know Phil has some discussions about this but I am referring to one's actual hands-on trading experience here.

Thanks a lot

David

Hi,

will like to ask firstly, which pairs did you trade on? anw phil only states EU and GU mainly for this mtd, though might work for some others.
anyway if you ask me, I will think recent days data, there are too many of the MAs together, for GU at least; it's near the 89 and also a major trendline over there. and twice it has touch the 89 then move away. the trend is definitely not establised.

that is a signal not to trade.

and how is ur r:r for ur trade? is it any good?

anw just something extra, u chinese? fr which country?

Yuan, Thank you for responding to my post.

Phil's method should work for other pairs as long as the trend is strong enough.
You can tell this by solid candle bar on more than 45 degree rising or falling
MVA.


I am actually trying to find out how most people deal with range mode trading in real-life trading rather than just doctrine.

I am new to forex, you can find some of my trade and approach in my trading journal thread.

I am a Chinese American.

Hi david,

Welcome to this 4hr macd by phillip nel. This is really a good thread for beginners like me. This is infact the 3 time i go through the thread again. The strange and ironic thing is i always discovered and understand each time more. How did i miss to realise that when i first gone through it.

I tried afew other systems in this thread. But it seems this system can and also produce high probability trade, especially the trend continuation during all times. The only small problem with this sytem. I shouldnt say small. Its very subjective. All you need is to be patience. I gave up this sytem several times because of the lack of it.

Q1. What do you think is the cause of this, seasonal (summer) or the market is on a major turning point ? I couldnt answer this quesions and maybe the others can. If you read through phillip nel mp3 about the fundamental and technical. You probably would probably want to study and understand the chart more. But it doesnt hurt to learn more about fundamental side to give you some edge.

Q2. What indicators, beside mva lines, you use to determine if a pair is in or out of the range mode?
When the price is also trapped between upper and lower resitance line. it bounces around. I guess you havent read this portion by mr krai. He summarized quite well on phillip rhythm . It explain what the rhythm is about or what this whole system is all about. You can go to page 1217, post #18242. "market rhythm 4hour strategy" or http://www.forexfactory.com/showthre...gy#post2423356

Q3. Do you trade during range mode ? if you do, how you determine
I dont trade during range. I only go for trend continuation at the moment.
Thats is why i say that this system need patience. The problem is if you take those range bound trade or counter trade and make a loss. You will start to lose confidence on this sytem. So for beginner, master the trend continuation first. And i believe phillip mp3 also talk about how to trade range type.

You may want to study the mp3 and read again. I am a slow learner, therefore, i took quite some time to understand. My suggestion is if you really interested in this system.

1. Your first step is probably learn to recognize is the price currently in what trend. Thereafter, you know whether the market is in what trend.

2. Study and understand the whole monthly, weekly, daily and 4 hourly in terms of their major pips, trend line and major support and resistance.
Why does phillip suggest us to do this. Sometimes the monthly show super up trend, but in the retracement of this monthly outlook. Your 4 hourly can have good downtrend to trend. But you will need to know that magical number for fib as you may hit that major support. Another example, you going to take a good trend continuation on a 4 hourly. However, your monthly show you are coming near a major major resistance line. You still want to take this trade or skip it.

3. plan out all your rules.

Hopes that help. you can also post out your trade regardless of right or wrong. At least we know we are on the same track with most of the 4h macd guys

hi,

no problem! welcome to forex trading! prepare to lose money along the way when you started. lol

but anyway no matter how good a system is, what makes a successful trader is really money management and psychology in the end.

Trading in range, probably not for this method (i am sorry) but there are others methods out there definitely. I use to use H4 BBand. TP SL 100 pips, works fine as long as you must be sure it is not trending.

Another is swing trading, identify the top and btm and sell and buy accordingly (there is a file for this to help identify the swing)

anyway divergence on macd is really one of the more powerful and high probability trades if you ask me

Jinsen,

Thanks for giving me the detail explainations.
It is very helpful.

May the force be with you in your FOREX journey.

David

No a great deal of trading opportunities for both EUR/USD & GBP/USD as they went through a period of consolidation. As I have mentioned in the money management video:



ITS ALL ABOUT KNOWING WHEN TO TRADE! Friday saw good bullish momentum develop, so I will be watching to see whether that continues into next week.

I will be creating the next lesson over the weekend which will be purely on stop losses.

Have a good weekend!

Cheers WG

Hello All,

I have been missing in action lately due to work and family and now that things are back in order, I hope to catch up on many great posts by many you.

As most of you have stated, the major pairs I follow which is the GBP/USD, EUR/USD and USD/JPY have been in ranging/consolidating periods and as welshguy and others have emphasized, is the patience factor in this 4H method.

The GBP/USD might be establishing a trend and might be ready for a breakout from the 1.6500/1.6600 range to the 1.7000 range.
As you can see on the daily, there is a nice separating of the moving averages and there are the 2 dojis by the 365ema followed by a nice bullish candle on friday.

On the 4H chart, the gap to the 8ema has been filled and we could anticipate a bounce off of the 8ema to test the trendline from the highs of june 3rd and june 11.......there is also a nice separation starting out between the 8, 21 and 55ema...............The gap indicator also gave a yellow strip followed by green bullish ones. I will look for entry off of the 8ema once and if it does bounce off of the 8ema. We shall wait and see..

EU is currently sitting on the 200 SMA. Will it break through or will it bounce ?

UJ bounced off the 50%fib and the 89 SMA. It looks like the 8 EMA is taking control but price is currently supported by the trendline.

actually will like to ask , EU the move down to the 200MA, is that a possible trade. seems to be so..

Time. this is weird.

My GBP/USD H4 Chart candles are different than the candles in your chart?

I have a DOJI at the second RED candle after the Friday break low, my chart is missing a DOJI that is on your chart and one of the up candles after the last break low on Friday is a different color and, I have 3 blue candles you only have 2?
Any ideas how this could be?

Hi Rastaman.

I see your broker is on GMT where there's a 3 hour 'Sunday Candle' from 2100 to 0000. To see this, hit CTRL-Y on your chart in 60 min TF and the periods will show. You can delete these 3 candles from history center if you wish...

The differences in candles (OHLC) are because of this too. FXDD broker for example will have a 4 hour candle opening THREE hours into one of yours.

Is it important? Being aware, yes, but in the long run the discrepancies will average out. What might show as an iffy pin bar in one broker could show a perfect one next time.

It's your strategy and adherance to it that matter most.

I get it, the other chart must not have the Sunday candles displayed then?
I suppose, I just have to watch out at the Tokyo Monday morning open.

Thanks.

And as I am here in Japan I know your handle means CRAZY.
How come you chose that handle? LoL

I lived in Japan for two years teaching English (but was KICHIGAI before that)

teaching english in japan. do u happen to be from singapore? ha