4 Hour Strategy (MACD)

...it was our popular pattern again on the UsdCad pair, the Head and Shoulders pattern-sHs, inverted, so a bullish sentiment or bias...this happened round about the 12:00 candle yesterday,18th April,2011...I was there so I took it, it was aswell a late entry, but the market was still breathing interestingly....I will post it as soon as I come back, have to attend to someone now...

Gloria in Excelsis Deo!

God Bless Phillip

...it was our popular pattern again on the UsdCad pair, the Head and Shoulders pattern-sHs, inverted, so a bullish sentiment or bias...this happened round about the 12:00 candle yesterday,18th April,2011...I was there so I took it, it was aswell a late entry, but the market was still breathing interestingly....Other currencies gave wonderful opportunities as well, like the EurUsd, EurGbp, GbpUsd, UsdChf, etc, but I have to control myself not to take all the signals as I do not expose my account beyond certain RISK PROFILE...So I took only the AudUsd and the UsdCad pairs... I will post it as soon as I come back, have to attend to someone now...

Gloria in Excelsis Deo!

God Bless Phillip

***Remaining in the spirit of this Thread/Strategy***
USD/CAD Pair

According to the daily chart, we are in a big down channel. There was a false breakout of the channel to the downside, so price went back into the channel pulled back to it finding support and moving away upward with a strong bullish candle: this is a confirmation of a bullish or an up move…see daily chart for illustration

According to the H4 chart, the break out from the daily channel was very clear, and after this break out, there was MACD Divergence which is in agreement with or supports the behavior of price pulling back to the breakout level after a breakout has occurred, that is, when price breaks a trend line, it pulls back to it before moving away or continuing in its motion…so with the MACD Divergence as well, price went back up to the breakout level, pierced into the channel…so it was indeed a false breakout for price later got into the channel pulled back to it finding support and moving away-bullish…then price ranged between a minor trend line within the channel (the purple line) and the bottom trend line of this big channel (the red line)-see H4 chart for illustration

…according to our rule, we trade off the top and bottom of the trend line in a range bound market or ranging market…see Phillip’s Lessons and trade examples on how to trade a ranging or range bound market…so there was a bullish engulfing candle at 0:00, GMT+2, finding support on the bottom channel, and that was the entry signal, at the close of the candle as indicated by the purple vertical arrow, I was asleep then: so in the morning I saw that, and during the 12:00 candle move, there was also a Head and Shoulder-sHs forming which was also a further confirmation…so as usual I switched to the ONE HOUR-H1 chart to make an early entry which showed me the sHs pattern very clearly, and that was it…

Edit 1: I jumped in before the close of 12:00 candle with a stoploss of about 18 to 20 pips. Take profit 1 according to the H4 was 60 to 70 pips which is at the 38.2 Fibonacci level…

Edit 2: I anticipated the break of the minor trend line so further take profit or exit levels were Fibonacci levels 50.0, 61.8, and finally the top of the big price channel, the red thick trend line

Edit 3: Tp one was hit, as price did break the minor trend line shooting beyond the 38.2 Fibonacci retracement level and also pierced the 200 moving average…I adjusted my stoploss modestly and my position is still on…trying to get to the full potential of my plan should it works out, which is the top of the big price channel according to my analysis…

PLEASE REFER TO CHARTS FOR FURTHER ILLUSTRATIONS AND COMMENTS

Gloria in Excelsis Deo!

God Bless Phillip

***Remaining in the spirit of this Thread/Strategy***

Confluence of Events-Key to Success in Trading

EurUsd Pair/8:00 candle close/GMT+2 Time zone-Today- 19th April, 2011

1 HOUR Early Entry Analysis
Price making a W-formation or pattern, also the price was making a triple bottom which are strong indications of price reversal: MACD already presents us with a Head and Shoulder formation; another powerful indication of momentum change in the market…entry was at the close of that bullish engulfing candle, 8:00 candle close.

Edit 1: Entry was made accordingly, and stoploss set below the bullish engulfing candle. Take profit 1 was at the 365 ema, take profit 2 towards the trend line… another way I do it is this: when I see such or any indication of a strong reversal of price, I quickly incorporate or apply or draw the Fibonacci retracement tool , and my first profit target is always at the 38.2 level, the next is 50.0 level, and so on depending on the potential of the trade which is determined according to my analysis…so by mere vision, the 365 ema, should be at same level with the 38.2 or towards the 50.0 Fibonacci retracement level…

4 HOUR Early Entry Analysis
From the 4 Hour MACD System; we know that when price gets between the 89 and 200 simple moving averages-the blue and the yellow curves respectively; we are expecting to see a ranging period or consolidation period, the technique is that we trade off the top and bottom of the moving averages which would form a range bound levels for price…

So price broke below the 89, went far beyond it shooting to the 200 sma, just few pips to the 200, and price close with a long tail which indicates that the 200 sma level has been rejected by price, price rejection, which could be also seen as a support for price, so as said earlier, I will now be looking for a nice entry candle to go Long towards the 89 as price has fallen between this two moving averages…MACD gave a beautiful Round Bottom,RB, and a long bullish candle was busy forming, but not giving me my desired entry point, and if I have to wait for the close of that H4 candle, I might not see an opportunity to enter…as usual I quickly switched to the H1 chart where I made my early entry, and that was it for today…

Edit 1: Entry was made as stipulated in the H1 Early Entry Analysis above. Risk/Reward Ratio was more than OK for the MACD system…

PLEASE SEE CHARTS FOR ILLUSTRATION

Gloria in Excelsis Deo!
God Bless Phillip

Hi naustingfx, thanks for been putting your insight and explanation here... It's truly like the way Phillip would trade... I like the way you explaining things... I haven't seen this kind of explanation except from Phillip himself. This is really the spirit of this system. Keep up the GREAT WORK!!!

...thank you brother, hammerhead...it has been already established that we are all connected, yes, this is because we came from the same realm, we all have the way of the supernatural breathing inside of us. And that is why we can understand even charts, information, etc being posted by some other persons...I really feel your words, God bless you too!

***Remaining in the spirit of this Thread/Strategy***

Confluence of Events-Key to Success in Trading

GbpUsd Pair/9:00 candle close/GMT+2 Time zone-Today- 19th April, 2011

1 HOUR Early Entry Analysis
We are in a channel: Price making Head and Shoulders-SHS, also MACD making SHS, and sort of V-bottom on the MACD at the entry or signal candle….the signal candle is our “candle-friend”, a powerful bullish engulfing candle welcoming me into the market today…

Edit 1: Entry was made at the close of the bullish engulfing candle; stop loss was below the candle. Take profit 1 was at the 89 and or 200 simple moving average, and Take profit 2 was at the top trend line should it goes…that was is for today in the GbpUsd pair…


4 HOUR Early Entry Analysis
Price is in a minor down channel, and ranging within it…towards our entry is a very beautiful long tail or long hammer, if that is acceptable piercing the bottom trend line, this tells me, right, price has found support on the bottom channel…following this long tail is a bullish inside bar or candle, and at this point, MACD Divergence is busy forming…enough confirmation for me….so I began to expect to see a beautiful entry point; but just what happened in the EurUsd pair, I couldn’t see my desired entry, and if I wait for that H4 candle to close, I might miss the music, as I have to be on board, I switched to the H1 chart where I entered into the H4 run…
Risk/Reward was nice for this system, see charts…


Edit 1: Take profit 1 was hit, and price began to reverse seriously.


Edit 2: Price began to reverse seriously…still thinking! What am I to do with the 2nd half of my position?!!...still thinking…

PLEASE SEE CHARTS FOR ILLUSTRATION



Gloria in Excelsis Deo!


God Bless Phillip

I'm sending you a PM, please check out your inbox. Thanks!
God Bless You too...

T0,

Nnaustingfx

Thank you very much for your well explanation post, we new learn a lot from this forum and ofcourse thanks to philip.

keep continue post your example , from last 2 week my balance is going up with this 4H strategy.

thanks again.

Regards,

Umesh Patel

thanks so much brother, i foucs on the EUR/USD pair, and make some wrong trade just the time, acturely get in too much earlier. your explain give me more idea about that.

Nice work and thanks for the details.What happened to your second position? Also can you please upload your templates ? Appreciate your help

Answers to Requests:

To: Msmarple...I think you and one other guy asked for my template; the template was posted by Phillip Nel himself but I can't really remember the post number so I have uploaded it for you below...I use the basic version of the MACD, version 1.02...

To: Hammerhead: I have just replied your private message.

God Bless Phillip

Thank you, very helpful. And once again thank you for your amazingly concise and clear application of Phillip`s method.

I always find it best to learn a method if I see current setups on pairs through the " lens " of someone actually applying the method successfully. Almost as good as real-time !

I wish everyone a good week and many pips !



_________________
michael

***Remaining in the spirit of this Thread/Strategy***


AudUsd Pair/8:00 candle close/GMT+2 Time zone-April 19,2011

The Daily trend line-the blue line, has proven to be very strong support for price...Price finding support on the Daily trend line 3 times, and moving away with a strong bullish candle...entry was at the close of the 8:00 candle...two lots taken, partial profit taken as well, and the 2nd position ran to the full potential of the trade-SEE CHART FOR ILLUSTRATION

Also see page 1606, post number 24080...very powerful, go back to that post and know what is said there and then connect it with this one for a broader analysis of the market and how price later changed his mind and went back up, continuing in the uptrend...this is so beautiful...go and see for yourself...
Just check out the 1st and the 4th post on this post (page 1606, post 24080), I said so because the 2nd and the 3rd posts are one Hour time frames. But this present post is strictly the H4 time frame which in connection to the 1st and 2nd posts of page 1606 post number 24080, gives and excellent combination for market analysis...
I have been attending to other departments of life that is why I have not posted this before now...cheers!

Edit 1&2:
Stop loss = 45 pips for each trade
Total stop loss = 90 pips
Take profit 1 = 70 pips
Take profit 2 = 266 pips
Total profit = 70+266 = 336 pips for a mini lot- 0.1 lot
...this 336 pips is equals 3360 pips for a standard lot or account...and this was made in less than two days...

God Bless Phillip!

Market Emotion:

Look at the tails on the trend line indicating that the trend line is a strong support for price; now this morning on the same trend line there was a strong bullish candle, a railway track followed by a tail...a strong indication of price reversal to the top trendline...I did not see my nice entry candle, so I switched to the 5minutes chart and there I took the deal, I am posting this deal almost immediately; this is what is happening just now...I have to post it immediately, hope some one find some use of it...

Edit:
stoploss = 13pips
tp1 = 35pips, and has been taken.
tp2=still running to the top trend line, and stoploss adjusted
see chart, a little delay due to slow internet speed;

God Bless Phillip

MISSION ACCOMPLISHED!

Wow...I have been awake for more than 8hrs waiting for this...price going to expected target...

God bless Phillip

***Remaining in the spirit of this Thread/Strategy***

EurJpy Pair/8:00 candle close/GMT+2 Time zone-April 19,2011


H1 Time frame Analysis:
One of our powerful reversal pattern or setup showed up again...price making triple bottom with an engulfing candle after a long ralley or down run; this indicates that it is due for price to reverse.

Like I said in my earlier posts; when I see such strong reversal setup, I quickly draw my Fibonacci retracement lines, and my first profit target is always at the 38.2 level, then 50, 61.8, etc: I also anticipate price getting to long term trend lines as the case may be: On the MACD we have the Head and Shoulder formation...everything working in agreement...and that was it

H4 Time frame Analysis:
Price have fallen between the 89 and 200 sma; according to this strategy, when this happens the anticipation is that we look out to take trades off this moving averages as price normally ranges between them finding supports and resistances at their levels...now price pierced the 200, the yellow moving average in my chart, finding a strong support on it and moving away with a strong bullish engulfing candle forming, on the MACD we have a righteous ROUND BOTTOM-RB formed...wow! But waiting for the H4 candle to close, I might not have space to play along with the "Big Dogs"...so I switched to the H1 time frame and there was the
"Holy grail" we all need. So I flowed with the overall Rhythm of the market and the did was done...



Edit:

Stoploss = 50 pips- fixed for each position
Total stoploss = 100 pips

Take profit 1 = 115 pips at Fibonacci level 38.2/21ema H4 tf
Take profit 2 = 160 pips at Fibonacci leve 50.0/365 ema on H1 time frame

Futher Anticipation:
Take profit 3 = 210 pips at Fibonacci level 61.8
Take profit 4 = 275 pips at the 200 sma on the H1 time frame(tf)

Comment: According to Phillip, when there is an indication showing that either an up or a down run is over, price often finds its way to the 89sma-the blue moving average in my chart; before deciding to now do any of the following:

1. Continue in its previous trend
2. Ranging
3. Emotion breezes in...

So as seen on the H4 chart; price went beyond the 61.8 Fibonacci Level embracing the 89sma...Cheers!

Result:
As usual; I normally take my partial profit, and allow the remaining position to run as much as possible to the full potential of the trade which is according to my plan as I have detailed above...

Therefore the results below:
Total stop loss = 100 pips
Total profit = t1+t4 = 115+275 = 390 pips
For a standard lot traded, the trader has obtained more than
$3900 US dollars;the EurJpy pair has more than 1$ value to a pip.

This took place in less than 2 days-28 hours.See Chart for Illustration

Folks! this is real FINANCIAL FREEDOM; I thank God who brought me into the REALM through Phillip.

Gloria in Excelsis Deo!

God Bless Phillip!

I hope everyone took the TC on the EUR. Here's a current trade on the GBP. The 1st chart is the daily showing the yellow trend line which was resistance and now is support. The 2nd chart is the 4 hr which show a BOZ (at least I believe that is the term) The 3rd chart shows the how price broke though the correction channel. My TP is based on 3 fib lines on from where price found support.

Nice posts Naustingfx

I have no idea why my candles show up the way they do when I post my charts

Edit: a good day for me

Thank you Naustingfx, we learn a lot from your post , keep it up.

Umesh Patel

I agree - I am loving your posts NaustingFx - they are clearly explained and inspirational. Please keep them coming!

if you have time would you be able to add more gems of info on which setups you find most profitable ie.. which candlesticks/price action and MACD combinations.

Big thanks to Philip for this great technique and all regular posters on this forum thread

Many thanks for your time! I will start to contribute to this thread asap - I am currently getting up to speed on this technique