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4 Hour Strategy (MACD)

  • #20,301
  • Jul 6, 2009 11:54pm Jul 6, 2009 11:54pm
Quoting time1300
Hey swingdjpj, you hit it right on the nail. The heart of the system is price action around the moving averages with MACD confirmation. The MACD is your trigger so there might be great targets but if the MACD does not confirm it then there is no trade.......that is also how I look at my trades. As you mentioned, there are so many opportunities to trade that one can trade solely on price action and moving averages but the heart of this system is based on the MACD signal given for your trigger finger.

Patience with this system is prudent and with...
Assuming every conditions is met. And that 4 hour candle closed, still with a green macd. Would you still trade it assuming you know that it need another 10pips before it made a red on that macd for tc. I cant wait for the new 4hour candle to close. If it continue to move down, by that time. It be late entry to enter. Or given this current scenario. It is why the 1 hr going into consideration?
  • #20,302
  • Edited 2:55am Jul 7, 2009 12:06am | Edited 2:55am
Quoting swingdjpj
I know there is good reason to take the signals given by price action and I use price action as the first thing that I look at but I have found that having MACD confirmation just works more for me. There are so many signals (opportunities) to trade with this trading model that I just don't like the odds when the price action is not confirmed with MACD. I can't say that it will not work without, but my statistics are based on taking trades that have a confirmation. This to me is the heart of this method. Otherwise, it is just candlestick trading...
I prefer to have a macd confirmation signal too - especially as we are so close to the 200 SMA and there is no clearly defined trend. Sometimes when the trend is very strong the macd signal will be lagging and then it is worth taking price action without the signal but this is not one of those times.
  • #20,303
  • Edited 1:53am Jul 7, 2009 12:54am | Edited 1:53am
Quoting jinsen
Assuming every conditions is met. And that 4 hour candle closed, still with a green macd. Would you still trade it assuming you know that it need another 10pips before it made a red on that macd for tc. I cant wait for the new 4hour candle to close. If it continue to move down, by that time. It be late entry to enter. Or given this current scenario. It is why the 1 hr going into consideration?
Yes, watching the 1 hr is very helpful and will help with your decision. As traders it is part of our job to assess whether we should enter early with more risk and perhaps get more pips or enter late and gain less pips but with more certainty. That is always our dilemma.
  • #20,304
  • Jul 7, 2009 2:21am Jul 7, 2009 2:21am
The Eur and GBP gave us the TC signal that we were anticipating. As I am writing this, if you would have entered at the close of that candle you would be in the green right now.........and within the rules of this system. If you have perfected the 4H entries then the 1H entry will definitely yield you some earlier pips before the close of that 4H candle and same can be said if one switches to the 5 minute to zero down even more on his/her entry.

Your entry decision should be based off of the 4H time frame and the Daily time frame and to switch to a lower time frame should only be utilized for your entries.

What I look for in my trades is first to establish the trend or consolidation period on the 4H and the daily time frame. if price action seem to be in a trend (nice separation of moving averages) then i can switch to a lower time frame and if I see the 1h moving averages in the same trend direction, then there is a nice confluence of events for a high probability trade. These are the trades I tend to wait for and are the ones that net you the most pips.

Switching to the lower time frames such as the 5 and 15 should be only implemented after the 4H time frame has been embedded in your heart as Phillip states. Make it your heart because the entry is the easy part.
Keeping Life Simple
  • #20,305
  • Jul 7, 2009 3:24am Jul 7, 2009 3:24am
Quoting time1300
The Eur and GBP gave us the TC signal that we were anticipating. As I am writing this, if you would have entered at the close of that candle you would be in the green right now.........and within the rules of this system. If you have perfected the 4H entries then the 1H entry will definitely yield you some earlier pips before the close of that 4H candle and same can be said if one switches to the 5 minute to zero down even more on his/her entry.

Your entry decision should be based off of the 4H time frame and the Daily time frame and to switch...
hi, sorry just to ask, so wad is ur entry point? just to double check at which candle you actually entered ur trade. is it the candle that just started? or the previous one where there is a large drop?
  • #20,306
  • Jul 7, 2009 4:13am Jul 7, 2009 4:13am
Quoting welshguy2000

Entry @ 1.6158
TP: 1.6040 zone (From daily & 21EMA on Daily) / 1.5980 zone (secondary)
Sl: 1.6315

I will post a video reviewing this trade when its over.

Please support my youtube channel by rating / commenting on the the video's:

Cheers WG
Morning all,

I have come out of this trade at B/E. 0 pips, I will explain the reasons why I have done this in the video later today.

Cheers WG
  • #20,307
  • Edited 4:26am Jul 7, 2009 4:14am | Edited 4:26am
Quoting jinsen
Assuming every conditions is met. And that 4 hour candle closed, still with a green macd. Would you still trade it assuming you know that it need another 10pips before it made a red on that macd for tc. I cant wait for the new 4hour candle to close. If it continue to move down, by that time. It be late entry to enter. Or given this current scenario. It is why the 1 hr going into consideration?
You have a good point Jinsen. I entered GU based on "evening star" formation (see higher sell line) and then I entered another trade based on macd TC (see lower sell line). It seems that you could have made more pips based on price action than waiting for the macd signal - about 59 pips in this case. So if you are good at price action then GO FOR IT. I closed at -4 pips with the macd TC entry compared with 55 pips with the price action entry which I entered earlier.

Phil also took some trades based on price action alone.
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  • #20,308
  • Jul 7, 2009 4:16am Jul 7, 2009 4:16am
Quoting welshguy2000
Morning all,

I have come out of this trade at B/E. 0 pips, I will explain the reasons why I have done this in the video later today.

Cheers WG
WG, I am looking forwards to seeing both your videos. Thanks very much for all your hard work. I hope your cycling is going well.
  • #20,309
  • Edited 7:09am Jul 7, 2009 6:05am | Edited 7:09am
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edit:sell eurusd get -7pips
  • #20,310
  • Jul 7, 2009 6:07am Jul 7, 2009 6:07am
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  • #20,311
  • Jul 7, 2009 6:13am Jul 7, 2009 6:13am
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  • #20,312
  • Jul 7, 2009 8:59am Jul 7, 2009 8:59am
Quoting welshguy2000
Afternoon all,

Entry @ 1.6158
TP: 1.6040 zone (From daily & 21EMA on Daily) / 1.5980 zone (secondary)
Sl: 1.6315

I will post a video reviewing this trade when its over.

Please support my youtube channel by rating / commenting on the the video's:

Cheers WG
Afternoon all,

Looks like I may have come out of that trade a little early - better to be safe than sorry, here is the video review:

Inserted Video


Please as normal comment / rate / ask questions as it helps others learn.

Cheers WG
  • #20,313
  • Jul 7, 2009 9:05am Jul 7, 2009 9:05am
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i think the eurusd will go up high,high ,high.so i do not get some pips.

now the up trend is over,i do not know where it will go.so i am out.

get 0 pips!
  • #20,314
  • Jul 7, 2009 9:16am Jul 7, 2009 9:16am
Quoting ssq
Attachment

i think the eurusd will go up high,high ,high.so i do not get some pips.

now the up trend is over,i do not know where it will go.so i am out.

get 0 pips!
Tricky market at the moment mate, you need to lock in profit - will show you how to do this in the lesson 4

good trade however

Cheers WG
  • #20,315
  • Jul 7, 2009 3:15pm Jul 7, 2009 3:15pm
Evening all,

After exiting my GBP/USD short a little too soon earlier today, i've decided to take on a short on the EUR/USD. The reasons for entering the trade:

1) 4H evening doji star formation which is a strong indication of lower prices.
2) Price has found strong resistance off 8 & 21 EMA's.
3) 4H aggressive turn around with close below 38.2 fib line around 1.3985 zone.
4) 8EMA on 1D has taken control together with candle formation of a shooting star formation.

Entry @ 1.3940
TP: 1.3640 zone
Sl: 1.4115

I will post a video reviewing this trade when its over.

Please support my youtube channel by rating / commenting on the the video's:

Cheers WG
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  • #20,316
  • Jul 7, 2009 6:31pm Jul 7, 2009 6:31pm
Quoting ssq
Attachment

i think the eurusd will go up high,high ,high.so i do not get some pips.

now the up trend is over,i do not know where it will go.so i am out.

get 0 pips!
Much better than making a loss. Actually I consider that a successful trade.
  • #20,317
  • Jul 7, 2009 6:42pm Jul 7, 2009 6:42pm
Quoting welshguy2000
Evening all,

After exiting my GBP/USD short a little too soon earlier today, i've decided to take on a short on the EUR/USD. The reasons for entering the trade:

1) 4H evening doji star formation which is a strong indication of lower prices.
2) Price has found strong resistance off 8 & 21 EMA's.
3) 4H aggressive turn around with close below 38.2 fib line around 1.3985 zone.
4) 8EMA on 1D has taken control together with candle formation of a shooting star formation.

Entry @ 1.3940
TP: 1.3640 zone
Sl: 1.4115

I will post a video reviewing...
I exited GU too early as well. If the market keeps going as it is, the EU trade will be very successful - good luck and thanks for the video of your previous trade.
  • #20,318
  • Jul 8, 2009 2:54am Jul 8, 2009 2:54am
Here is a trade in h1 coming up in GU.

1-Price hit 8 EMA in 4h and came back.

2-Price hit 21 EMA in 1h and came back.

3-Retraced from 38.6% level.

+++London breakout+++


Just waiting for red bar on macd 1h.
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  • #20,319
  • Jul 8, 2009 4:02pm Jul 8, 2009 4:02pm
Quoting welshguy2000
Evening all,

After exiting my GBP/USD short a little too soon earlier today, i've decided to take on a short on the EUR/USD. The reasons for entering the trade:

1) 4H evening doji star formation which is a strong indication of lower prices.
2) Price has found strong resistance off 8 & 21 EMA's.
3) 4H aggressive turn around with close below 38.2 fib line around 1.3985 zone.
4) 8EMA on 1D has taken control together with candle formation of a shooting star formation.

Entry @ 1.3940
TP: 1.3640 zone
Sl: 1.4115

I will post a video...
WG, is ur trade still valid, how long or soon do you think the target will be achieved? Can I still enter the trade @ below 1.38?
  • #20,320
  • Jul 8, 2009 10:23pm Jul 8, 2009 10:23pm
Quoting mjay
WG, is ur trade still valid, how long or soon do you think the target will be achieved? Can I still enter the trade @ below 1.38?
Hi, I think nobody can predict the market, nobody can tell u the movement, best is learn from WG how to trade then to ask him to predict the movement. Anyway I believe WG's target is just a target, actual TP depend on market condition
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