4 Hour Strategy (MACD) | Page 1254 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

4 hour strategy (the nausbot - 4 hour trader) 25 replies

4 Hour Strategy Macd+other Indicator 21 replies

X-1102 1 hour , 4 hour and daily Tf trades 7 replies

Create a verticle line at certain hour for every certain hour 16 replies

Is the "4 Hour Strategy (MACD)" the best system here at FF? 20 replies

Attachments: 4 Hour Strategy (MACD)
Exit Attachments

4 Hour Strategy (MACD)

  • #25,061
  • Jul 18, 2012 5:37pm Jul 18, 2012 5:37pm
No, You're not missing anything... it was simply a tsunami moment on a Friday that wiped out the previous days low and high for no reason.... it went up and hit the MA and also the previous support that had turned into resistance. I just threw in a quick small sell and took 10 pips and then closed for the weekend...... I pay special attention to stop runs that take out previous days highs or lows... by about 15 pips or so and then retreat... they can be good placed to countertrade. If they go more than 15 or 20 pips it may be more than just a stop run.. Friday it just took out thursday's low and took off... Look at the whole week last week at how it would take out the previous days extremes and then retreat... I trade them with a close stop. if it barely retreats and then goes on.. it may be a good time to stop and reverse... it depends on alot of things that you just learn after years of looking at it.... PipPip Jimdandy....
  • #25,062
  • Jul 19, 2012 6:51am Jul 19, 2012 6:51am
Quoting JimDandy
No, You're not missing anything... it was simply a tsunami moment on a Friday that wiped out the previous days low and high for no reason.... it went up and hit the MA and also the previous support that had turned into resistance. I just threw in a quick small sell and took 10 pips and then closed for the weekend...... I pay special attention to stop runs that take out previous days highs or lows... by about 15 pips or so and then retreat... they can be good placed to countertrade. If they go more than 15 or 20 pips it may be more than just a stop...
Makes sense. Thanks Jim.

Best,
H
  • #25,063
  • Aug 8, 2012 3:23am Aug 8, 2012 3:23am
More often I see potential for trade coming during the 1hour chart. How Should we trade the 1 hr chart? If I read this correctly, Phil mention using the 1hr chart for early entry for 4hr MACD. But if trade is coming at the 1hr MACD can we determine the trade using the 15min chart?
  • #25,064
  • Aug 9, 2012 6:41pm Aug 9, 2012 6:41pm
Hello,

Thanks for the system and for all of the helpful instructions. Apologies if this has been covered, but I couldn't find it in search. I am trying to set up the MACD, but my demo account doesn't seem to support the 5/13/1 configuration. It lists "Signal Period" instead of "SMA MACD", but I assume it is the same setting. I can set it up as 5 fast, 13 slow, 2 signal period, but that would look a little different. From the sampling I have done so far, it looks like there is an MQ4 alternative, but my preference would be to stick with a Java platform since I am more familiar with that and it looks pretty flexible (it seems to have a lot of other stuff going for it).

Would people recommend I try with a modified signal, or would it be better to bit the bullet and translate that MQ4 code into Java? Thanks in advance for all the information!
  • #25,065
  • Aug 9, 2012 7:34pm Aug 9, 2012 7:34pm
Quoting sf_jeff
Hello,

Thanks for the system and for all of the helpful instructions. Apologies if this has been covered, but I couldn't find it in search. I am trying to set up the MACD, but my demo account doesn't seem to support the 5/13/1 configuration. It lists "Signal Period" instead of "SMA MACD", but I assume it is the same setting. I can set it up as 5 fast, 13 slow, 2 signal period, but that would look a little different. From the sampling I have done so far, it looks like there is an MQ4 alternative, but my preference would be to stick with...
Hi,

Your platform isn’t a MT4 platform(?), making it harder to make the set up properly. I remember having a similar problem with the setting of 5,13,1.

Maybe there is a possibility: check the indicators list , see if there is macd and maybe something like macd histogram , having 2 macd indicator,so now there is a possibility that one of them will be able to set properly. it did for me , at that time, later I switched to MT4

Hoping it can help you,
Yvon
Yvon
  • #25,066
  • Aug 9, 2012 9:37pm Aug 9, 2012 9:37pm
It looks like I am back to the drawing boards. I think I would try just having two separate platforms - MT4 for education and then Java for the final execution platform and for some of the backtesting. It looks like I am back to the drawing board. I am papertrading at the moment and I just discovered my chosen broker is not an ECN for the account I wanted to open... This changes my research focus for a while.

I am curious if people are doing well with this even with high slippage rates in a small account because I might end up falling back to that.
  • #25,067
  • Aug 14, 2012 3:49pm Aug 14, 2012 3:49pm
I've read the 4HR MACD introductory paper and have demo'd the system, so I've got an idea of what to look for in a setup. I like crosscurrencies like EUR/AUD, EUR/GBP and AUDCHF (just as examples) because they tend to trend well. My forex account gives me 22 pairs I can trade at any one time. I would choose to have no more than 4 maximum trades open at any given time.

1. Would you filter based on the MACD value, i.e. must be > 0.0015 or < -0.0015? Or can you ever find good setups within this range that will give you more than 20 pips?

2. Can anyone say if certain pairs work better with this system or is it a fairly random distribution?

3. Are pairs like GBP/JPY and USD/CAD difficult compared to other pairs when using this system? To me, these are most unpredictable to trade manually and I have trouble with them for that reason.

4. Is there a post anywhere in this topic that discusses the previous questions?

If anyone would be kind enough to respond to any one of the questions I would be most grateful. Thank you in advance.
  • #25,068
  • Aug 14, 2012 6:23pm Aug 14, 2012 6:23pm
Re: pairs. I think I read early on that he preferred usd/chf, usd/yen, and usd/gpb, but I wouldn't swear to it. I am also biased because I prefer to include usd as half of the pairs for commission reasons. I would be interested in hearing whether people think that is penny wise pound foolish, though.

Re: MACD filter. I would be interested in hearing the answer to this as well. Which signal type are you talking about? Trend continuations? Round top/bottoms?

Re: My earlier ECN question. I was probably worried over nothing. It looks like most of the people complaining about commissions are taking more scalping trades than this system. Also, MB looks like it might be a good ECN option. Anybody heard anything about them? I think I will work on MT4 and Java in parallel to see which one I am able to get something useful out of first.
  • #25,069
  • Aug 15, 2012 9:25am Aug 15, 2012 9:25am
there is a beautiful head and shoulders formation(MacD) on the EURUSD daily chart.
Yvon
  • #25,070
  • Aug 20, 2012 12:08am Aug 20, 2012 12:08am
Quoting trademin
there is a beautiful head and shoulders formation(MacD) on the EURUSD daily chart.

Good observation Trademin. I see it too. Also the 4hr is forming a nice triangle after bouncing down off the weekly trendlines and the moving averages are bunching up together. Looks like we might have a breakout/breakdown soon.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 23 KB
  • #25,071
  • Aug 25, 2012 6:45pm Aug 25, 2012 6:45pm
Stopping by to see how the gang is doing. From the # of posts I see it's doing pretty well here....I miss you guys.

For the past...few years?, has it been that long I've been doing a lot. Right now, in addition to soon to be Hurricane Isaac looking like it will be passing right on top of my house, as far as trading goes I've been writing options on futures. I had to disembark from the Forex arena because it was simply taking up too much time. My parent's health was failing, they currently both have dementia but still remember family and are now in 24hr care. That took a lot out of me and that responsibility will be with me for a while still. I miss this market but writing options gives me more free time. I am pondering getting back in the ring here but with Phillip's 5min method using my smart phone for about 2 hours in the morning session. I just wanted to stop by and see the gang. Hoping to drop by here more often soon.

Hi Phillip!
  • #25,072
  • Aug 26, 2012 1:35pm Aug 26, 2012 1:35pm
Quoting Palmer
Stopping by to see how the gang is doing. From the # of posts I see it's doing pretty well here....I miss you guys.

For the past...few years?, has it been that long I've been doing a lot. Right now, in addition to soon to be Hurricane Isaac looking like it will be passing right on top of my house, as far as trading goes I've been writing options on futures. I had to disembark from the Forex arena because it was simply taking up too much time. My parent's health was failing, they currently both have dementia but still remember family and are now...
Hi Palmer, glad to hear from you, you have been doing a lot for 4hmacd, and I recognize you for the good work you have done here: thank you very much.
Sorry for what is happening for you about your parents and the hurricane. You mentioned that they are in 24 hr care, so I will pray for them and for you,
this is a special time, parents are high value,
Thanks for stopping by,
Yvon
Yvon
  • #25,073
  • Aug 26, 2012 1:39pm Aug 26, 2012 1:39pm
Quoting Palmer
Stopping by to see how the gang is doing. From the # of posts I see it's doing pretty well here....I miss you guys.

For the past...few years?, has it been that long I've been doing a lot. Right now, in addition to soon to be Hurricane Isaac looking like it will be passing right on top of my house, as far as trading goes I've been writing options on futures. I had to disembark from the Forex arena because it was simply taking up too much time. My parent's health was failing, they currently both have dementia but still remember family and are now...
Holy %^$@, good to see you post. Watching your parents age is really difficult. I'm sorry about that situation. Looking forward to seeing more posts.

Raymond
  • #25,074
  • Aug 27, 2012 11:39pm Aug 27, 2012 11:39pm
Good to hear from you .... was wondering what had happened to you.. sorry to hear about the parents... that's really tough to deal with... as you well know. Looks like Isaac is gonna cause trouble further west so you get a free pass this time.... PipPip...JimDandy.
  • #25,075
  • Aug 28, 2012 1:43am Aug 28, 2012 1:43am
As far as wondering about the signal period in the macd, it should be set to one... it is really not used.. it is the moving average OF the macd itself. The actual macd is the comparison of a 5ema and 13 ema whether they are getting closer together of further apart.... Whether the Moving Averages are Converging or Diverging.

Attached Image (click to enlarge)
Click to Enlarge Name: macdexplained_001.png Size: 98 KB


As you can see here.. all the macd does is enable us to see instantly with a change in color whether the ema's changed from getting closer together to getting futher apart.. or visa versa. You could just put these two ema's on a chart and watch them but sometimes its hard to tell whether they are getting closer or futher apart with the naked eye... the macd makes it easy... having said that it is important to note that while this thread is the 4HR Macd thread it is really NOT a system based on the macd signal...

...... The heart of this system is in learning the market rythym that Philip Nel taught with audio recordings and pdf files .... the way that the price moves around the 8ema,21ema,89sma and 200sma... It is that rythym that determines whether you even look at the Macd for extra confirmation. Sometimes you will see a good push off of the 21ema that does not get a corresponding change in color on the macd... perhaps because your 4hr period changes on a different hour than another trader... if its a good move and the risk reward can be kept sensible take the trade based on the rythym alone... chances are that on a lesser timeframe the macd gave a signal.
..... My point is... Don't get to hung up on the Macd... its useful but not the deciding factor to take a trade... look at the rythym. If you see it working into a trend with the averages getting in the correct order you may want to move to the 1hr to get the "jump" on the trade and get in at a better place where you can have a better reward to risk ratio...
.....Also pay attention to divergence between price and macd... a simple change in color for a trend continuation needs to be at the right place on the chart. Not after the macd is already relatively high... typically the price will return to the 8 or 21 ema depending on the steepness of the trend before giving a trend continuation...here's an example...of what to look for.

Attached Image (click to enlarge)
Click to Enlarge Name: rythmandmacd.png Size: 142 KB


To learn this system go to page 109 and start at about post 4335 with the two zip files.

Looks like i've been answering this question for 4 years!
http://www.forexfactory.com/showthre...33#post1784933
http://www.forexfactory.com/showthre...84#post1822784
  • #25,076
  • Aug 28, 2012 10:48am Aug 28, 2012 10:48am
Thanks for the thanks everyone. Looks like the storm is gonna spare us here. Working on a slimmed down version of Master Jedi Phillip's 5 min method...smart phone only....
  • #25,077
  • Aug 28, 2012 12:28pm Aug 28, 2012 12:28pm
Quoting Palmer
Stopping by to see how the gang is doing. From the # of posts I see it's doing pretty well here....I miss you guys.

For the past...few years?, has it been that long I've been doing a lot. Right now, in addition to soon to be Hurricane Isaac looking like it will be passing right on top of my house, as far as trading goes I've been writing options on futures. I had to disembark from the Forex arena because it was simply taking up too much time. My parent's health was failing, they currently both have dementia but still remember family and are now...
This is realy great to hear from you. I know what it is when parents is getting old and need a lot of caring. Hope to see more of you and some inputs as well. Take care
  • #25,078
  • Aug 28, 2012 12:29pm Aug 28, 2012 12:29pm
Thanks JimDandy for your explaination of the MACD and your reading of the chart. For someone new to this method its very helpful
  • #25,079
  • Aug 28, 2012 12:30pm Aug 28, 2012 12:30pm
Quoting JimDandy
As far as wondering about the signal period in the macd, it should be set to one... it is really not used.. it is the moving average OF the macd itself. The actual macd is the comparison of a 5ema and 13 ema whether they are getting closer together of further apart.... Whether the Moving Averages are Converging or Diverging.

Attachment

As you can see here.. all the macd does is enable us to see instantly with a change in color whether the ema's...
Thanks for taking care and answering the questions with patience.
  • #25,080
  • Aug 28, 2012 9:41pm Aug 28, 2012 9:41pm
Quoting Phillip Nel
Thanks for taking care and answering the questions with patience.
long time no see ,master .miss your videos .
A chart helps those who can read it.
7 traders viewing now