4 Hour Strategy (MACD)

Remaining in the spirit of the Strategy

Market Rhythm

SEE WHAT EVENTUALLY HAPPENED

The original analysis for the trade still hold; the up move was still valid as anticipated. The MACD Divergence setup still prevailed in both the 4Hour and 1Hour time frames.

Inset A: The 4 Hour chart; the pin bar or tail on the bottom trendline or channel (the small circle) and the little hanging man forming an inside bar or candle confirmed the up move...Also price has found support 3 times on that bottom channel or trendline; this could also be regarded as a new signal on its own where entry is at the close of the tail moving away from the trendline-the small circle.

Inset B: Market Emotion; This is the 1 Hour chart. Price has found support 3 times on same bottom channel as in the 4Hour with beautiful mutiple tails on each of the support points, that is buy pressure; they are pushing the market or price upwards. Also at the 3rd support point, the small circle; with that tail and a strong bullish candle, price went back into the 2nd Shoulder...just as always, confluence between the two charts or scenarios-the 4-Hour and 1-Hour time frames...
Inset C: Just to show the corrlation between the two pairs;EUR/USD and GBP/USD.

God Bless Phillip!

naustingfx,is fascinated by your works till now, thanks!

Market Rhythm

EurUsd-June 28,2012-22:00 candle close-GMT+3

The previous analysis still holds.

Inset A: This is the 4HOUR time frame.

REASONS FOR THE TRADE

1. We are in the down trend; but as you can see, price is not actually flowing downwards; it is just struggling to proceed in the down move (this signifies weakness of price to continue in the down trend...price is stalling )

2. The rule says that when we are in a down trend and price breaks above the 21 closing above it then pulls back to it or below it...it is an indication of the end of the down trend...this is very clear; price has closed above the 21 and pulled back below it with that long bearish candle kissing the bottom trendline; and found a strong support there and moving upwards with a nice bullish candle...

3. Price is still within the channel and found support aggressively at the bottom trendline and moving northwards with a strong bullish candle

4. MACD Divergence has prevailed for days, that is, price going down and MACD moving up. Remember that this MACD Divergence was one of the strong reasons why I took my previous trade (see previous charts and analysis)

Inset B: This is the 1HOUR chart or time frame. Confluence of events; price making double and triple bottom on same bottom trendline or channel as in the 4Hour time frame and finding support agressively, and moving up with a strong bullish candle. As usual, the 1Hour early entry technique adopted....and that was a setter!

Inset C: This is the GBPUSD pair. This is just to show the correlation between the EURUSD and the GBPUSD pairs. As you can see, the same scenario or weather occured, and that was it....

Entries, Exits, and Stoploss levels were well specified on the Charts.

God Bless Phillip!

Gloria in Excelsis Deo!

*********************************************************

Thank you for your words and concern. God bless you!

I do have a gift for you. See the chart below.

It is a trade that I took yesterday. The UsdJpy pair. I hope that you find some good use of it. Thanks...

USDJPY-July 5th,2012-GMT+3

Look at the chart and see if you can unleash the reasons why I took that trade...

Comment:All the trade that I post here are my live trades; my live account.

God Bless Phillip!

Gloria in Excelsis Deo!

Hello, Phillip or anyone can help..

I need some advice on how many pips extra I need to place
on top or below the current candle high or low for stop loss?

Thank you...

God bless you Phillip.

By studying and reading the thread I was not able to understand the meaning of: RB - VT-TC ... that are found in Macd_colored_v104.
Can anyone help me understand this indicator.
I use it at 5 15 1 with BB 15 and 5 ema. When ema crosses median of BB and Macd through 0 it is possible enter

Tanks

You can can go to page 109 of this thread and find anything you need.
http://www.forexfactory.com/showthre...14630&page=109
but to answer your question look at this... screenshot of the definitions
http://screencast.com/t/cXh003ZoFs9
this is from the L9 (lesson 9) major macd signals pdf file ... PipPip... JimDandy

Here are some indicators that i put together to make it easy to put the Moving averages on your charts... you just drop one indicator and it puts the 8EMA, 21EMA, 89SMA, and 200 SMA on the chart all at once... you can make them whatever colors you want and whatever thickness... On the MACD I have it set to Lime and Magenta by default because I discovered that Red and Green is harder to see for those traders who are Red/Green color blind.... Phillip also made a 55 minute youtube video named
"4 Hour Market Rhythm (MACD) Strategy By Phillip Nel" that is very good to watch.... put these three ex4 files in your experts/indicator folder and the tpl file in your templates folder.... NOT the mt4platform/experts/templates folder BUT the mt4platform/templates folder. And your chart will look like this..

then you can go in and change the colors to what you like and re-save the template.
PipPip....JimDandy

Hi guys!

What order tool you use to manage your trades more easy?

Jim Dandy,Thank you for the advice, this is a thread that did very well and give good results. Very good . I've seen in a post "Phillip_Nel's_AO" indi: perhaps replacing Macd 1 5 13? Thanks again

Yes i made the PhillipNelAO. But made a few changes and renamed it MACD so that people would know what it was by name.... some are not aware that AO stands for Awesome Oscillator ... thought I would put this chart up... its of the usdcad which is not known for being easy to figure out.... hence the name LOONIE. You must be careful about what pairs to trade and what time of day to take the signals.... USDCAD during asian session is a double problem.......

As is turned out the candle ended up finishing with a good signal that enabled a close stop above and a takeprofit at the 21 ema for at least 2:1 reward/risk... usdcad news is about to come out however so its time to exit this trade if not already out...or at least move the stop to lock in the pips. PipPip...Jimdandy

Thought i would try and get an overall grasp of the EURUSD here are the weekly daily and 4hr. charts. First of all the WEEKLY..

As you can see the divergence says that the momentum for this down trend is weakening.. hard to believe with the news coming out of the Eurozone these days. (By the way..... the horizontal lines are every 100 pips.) You can see in the past how the divergence was correct.....hmmmm .....DAILY CHART.

Once again we see the divergence. Notice also that it has been several days since the price made it back to the 8ema... which is not real uncommon in a trend for small candles to "surf" just off of the 8ema.. however these are not small candles..as you can see.. from that last tiny Sunday candle until now the price has essentially gone no where...on to the 4hr.

Here you can see that had I taken the short trade that I posted earlier (#25048)that I mentioned was to far from 21ema for me.... I would have gotten stopped out only to watch the market hit my stops then go down.....As you can see, for all of it's wiggling around... it has gone no where this week... and the divergence is still seen on this time frame....in fact during the small candles it gave a countertrade signal on the MACD that offered the opportunity for a very close stop below with a take profit of at least 2:1 reward:risk.... R:R is key to being successful... if you will maintain at least 2:1 in your trades.. you can be wrong half the time and still make money....you only have to be correct 1/3 of the time to breakeven.. Also I'm noticing the the price has not been back to the 21ema in a week.... this is tough to do... the last time this happened was in May.
So here are the possible scenarios:
1. The market is going to sputter around and allow the price to move horizontally until it gets to the 21ema while the market gathers steam. (people develop an opinion about which way it needs to go).
2.It is going to rapidly go thru it in a pinbar fashion (big traders clearing their books taking profits and hitting orders to develop positions.)
3.It will go thru the 21ema and stay there for a few candles and then revisit the 21ema and move on to the 89 sma.....(people becoming cautiously optimistic about the eurozone)...by this time the 89sma will be much closer to price than it is at present.
4. The market completely ignores this divergence they have created. (remember this divergence is a result of the markets opinion slowly becoming weaker.) Will something happen that reaffirms faith in the euro? Or will the house of cards begin to collapse ever faster as the eurusd tanks?
Which will it be? Is the Divergence lying? It will not repaint and go away...it will stay on the chart and either the fundamental news will override it or it will prevail......divergence on small timeframes is almost useless ... but on larger timeframes it is more dependable ... however it also takes much longer for the indicated move to happen... so if you get in too early in anticipation of such a move it might move against you for some days.... so it's a two edged sword..... only time will tell. Until then keep taking trades that offer a good r:r and stick to the rules........ PipPip.....JimDandy

Jim Dandy, you are perfect. With you si impara very things on trsder

Anybody took a trade on E/U, after 4H TC signal?

I did not take it because the stop would have had to been at least 53 pips or even more if it decided to test the 1.2300 level or the 21 ema and in order to get a good reward/risk I would have had to been looking for a 100 pip move against the divergence .... so I played it safe.... as you can see with the tails .... the market is unsure of what to do at this point.....and has really gone no where... so if you want to take the trade now..... it's still could happen.....now it's only 44 pips from the 21ema instead of 62........PipPip...Jimdandy.

I am not familiar with the EURAUD pair... but it looks like it could give a pretty good signal.. it has returned to the 21 ema due to the aud employment report. Not because the euro got stronger....if this last candle gives a small move down and a signal on the macd for a TC it would be a nice r:r setup ... will look at it again in a few hours if i'm awake....

small candles pushing off of the 21ema in the direction of the trend are pretty dependable....PipPip.....Jimdandy.

Do you know to look for this?

Here is the 15M chart.... to see what's "inside" the 4hr..


Here's a little story about why you need to use larger time frames...

Don't know what triggered this....tsunami?

Consumer sentiment due any minute ....so a close stop is in order.....

Normal Friday the 13th insanity I guess.... Everyone have a good weekend...
PipPip......Jimdandy....

Hello Everyone.

Im new here my first post. been going through all the posts and lessons that Phil has up and have been simultaneously back testing on the strategy tester. So for this is crazy effective.. Anyway i haven't properly been through the posts of all the folks trades here but will start that soon. For now I just noticed your trade Jim. Neither the H1 or the H4 MACD gives any sort of a signal for a short. From what I see you have just taken this as a touch trade? Does that conform to the entry rules? Am I missing something here?

Best,
-H