4 Hour Strategy (MACD)

I read the thread everyday. I am trying to add a volume analysis to this strategy.

The metatrader default volume indicator seems to be enough even though it is actually a ticker indicator.

This could help us to get involved in the market when there is actual activity going on.

I am going to post a chart with some examples and how it can be implemented.

i started testing market rhythm this week on demo .

Happy Monday AM from NZ
Phillip - if you have a couple of minutes, would you kindly have a look at what I " think " I am seeing on the AussieNz. I have approx 1 hour to candle close but am getting my plan for today organised. I will enter Short on candle close provided it is below the 8ma and I get a TC signal from the Macd. A stop just back above the 21ma is around 30 -35 pips. I will target 1/2 at the last Low approx 1.20500 and set remaining to B/Even. Final Target will be the next BRN of 1.20000.

I do have a Plan B - as this is the 1st candle of the new week , this last hour could throw me a curve ball and head back to the 21ma. If PA closes above the 21, I will wait for it to re-test the 21 as Support and watch for a wee run north towards the 89.

I will look at the EU , GU a bit closer to London Open when there is some volumes to prod the market into action.




UPDATE: New candle has opened - Price stuck between the 2 ma's and no clear intention shown just yet. I will be keeping my plan A Short open . Lets see where this might take me. PRICE will tell me where it wants to head

My View of the Pound
The H4 is showing a bit of interest in pushing higher following this break out upwards. Early yet but I am getting prepared for a signal to get long and if that happens , I need to be ready. I will check the H1 to see if there might be a re-trace back to the BRN 1.5500 Support . Then PA will determine if I play or not. Anyone have any ideas on this pair??

I assume a lot of people check the thread daily like myself but do not have as much knowledge or experience as yourself and others on here. BUT I really do appreciate reading your posts and they say a picture is worth a thousand words, well whoever said that is correct.

I look at your attachments and comments and it's just so clear to see the trading method in action. However, getting that into my DNA when checking my own charts is a different prospect altogether. ;-)

I trade with real money even though only micro so its not a play thing I take this seriously.

Keep up the good work.

AU - H4 has shown a strong break through the resistance at the 8 & 21 ma's as well as closed above and moving away from the BRN 1.0300. Gives me a chance to play for around 50 pips with a good r:r. I will take 1/2 out at approx 1.0350 and move rest to B/Even.



NU - H1 Similar break out but entry based on a retrace back to Resistance level ( lower T/Line)

AussieNZ- Update:
Still waiting for Price to tell me where to look. Original Plan A is still possible. What I did not mention on my chart is that we would be trading away from the 21 ma.
Even if price wants to make me look silly & starts to break north, I still have Plan B . A break above the resistance at the 21 & T/line gives us the opportunity for a re-test entry Long - on either the H4 or by an earlier entry on the H1.

GU UPDATE :
Price did break strongly thru 1.5500 at the top of this H4 CONSOLIDATION area. I have waited for a retrace back to the breakout level but could only find Support at the 8ma. Set my Long order 1.5525 on the H1 Chart and now searching for around 20 pips.

& Finally - the EU:
I just want to tell you guys that I am still studying this method & trying to learn as much as I can about the Rythym of the Markets. My knowledge is still pretty limited and I am of the opinion that posting what I see may help me as well as everyone else. I hope I am getting close to that Light-bulb moment ( LOL )
I am still on Sim Account and even though I show the trades I take here, I will never take multiple trades when I go Live. I will stick strictly to the Euro until I know it inside out. Meantime, I am taking all trades I see as this is a great practice for training my eyes to recognise possibilities. Hope you bear with me while I learn & if our readers can pick up bits of helpful info , then that is great too.
Also, this just serves to show why looking at too many charts can be our downfall - during these past couple of hours that I have been posting several currency crosses, I have actually missed this perfect entry on the Euro H1. Not a big huge runner but still was worth 30 - 40 pips. That is all one needs regularly to be successful.

Anyway - Thanks for sharing everyone.
Phillip - you still keeping an eye on us learners????

Good Morning All
9.00am here in NZ. Looks like a pretty rewarding session overnight.
I thought I would summarise my trades if anyone is interested. Wondering if anyone else took any of these pairs? If so, a picture with comments would be great.

GU : Touched my 20 pip target exactly. I had set my Stop Loss for 20 but never set a profit target ( my error ) . Don't know if trade would have been exited for
20 or not but mission accomplished as far as my plan went. Closed this out for small loss of 3 pips once I realised my mistake.


NU : All as per my trade plan on this one - Price made its way thru my upper T/Line fairly easy. +16 achieved.

AU : Still in this as I write. Took 1/2 out at 1.0351 ( + 35 pips ) and rest at B/Even overnite . Have just moved stop again to secure another 12 pips. New
stoploss is now at 1.0330.


AN : Did not play this one in the end. Price did break solidly thru the BRN 1.2100 but the candle was too large for my liking. The profit target at the recent low
was only around 30 pips but my stop loss would have needed to be around 44 pips . Could still work out but too much risk for me. I will continue watching
pair at Aussie Open - Price has re-tested the 1.2100 twice overnite and is now contained at the 8ma Resistance. If Price can drop further and Macd can give
me a TC signal, I will consider things then. Not a huge amount of pips likely but there is still a bit of a space down to the last low(support ). Grateful for
whatever market wants to give me . Picture attached




EU : Price delivered as suggested. The BRN 1.3100 acted as a huge magnet so the 36 pips on offer was pretty easy in the end. In fact the price went an extra
16 pips past this level - not too bad for a 1 hour chart. I see that the 1.3100 is the eventual winner though as price is now consolidating here - Lets see
what happens later this PM when the market heats up again.

I wish to thank God before everything. He directed me to his one and only friend:- Philip Nel. My heart cant thank you enough.
My God has blessed you already.

Below is a:-


A Simple Plan To Dramatically Improve Your Trading

Let me ask you a question, and please answer yourself honestly: Do you have a plan of action for your daily trading routine or do you just open your charts and randomly start trying to find trades with no logical guidance behind your actions?
Plans give you a “roadmap” of how to go about getting what you want in life. Not having a plan for something makes it harder, it doesn’t matter what it is. Even if you are planning a family vacation that should be full of enjoyment and relaxation, if you don’t have at least a basic guide as to what you will do each day, it’s probably going to end up being confusing, semi-chaotic and highlighted by fights and disagreements rather than fun and laughter. Planning makes everything simpler and easier to accomplish, and a simple plan can put even a complex or lofty goal within reach.
Today, I am going to lay out a simple plan that you can use to improve your trading. The only “catch” with this is whether or not you have the discipline to stick to it. Most people struggle with discipline in the markets, but simplifying your daily trading routine can make it easier to stay on track and remain disciplined. So, let’s discuss the various components of this simple plan that I’ve designed for you and then next week you can get started following it and see if your trading improves.
Note: The steps below are meant as a basic trading guide or plan to help struggling or beginning traders. If you are serious about using this plan, then you should follow it for at least two or three months and then tweak it as you see fit after that.
Step 1: Trade only major markets

The first step to this simple daily trading guide is to be sure you’re only analyzing some of the major markets. I like to stick to the major forex currency pairs as well as spot Gold, Crude Oil and Dow. Here’s the symbols for the markets that I follow the most frequently and the ones you should follow for this simple trading plan:
EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCAD, USDJPY, EURJPY, GBPJPY, AUDJPY, XAUUSD, WTI, DJ30
That’s 12 markets, more than enough to focus on. If you’re in the USA and you can’t trade spot Gold, Crude or Dow then just focus on the currency pairs I’ve listed.
There really is no need to analyze 20 or 30 markets like many traders do. Besides, if something big happens that really moves the markets, it’s probably going to show up as a price action signal on one of the 12 markets I’ve listed above anyways. If you really want to simplify your daily trading routine, you should scale-back the markets you analyze so that you are just focused on a handful of major markets. The first step in this simple plan is to figure out the markets you will trade and make sure you’re not looking at more than 10 or 12 per day, the list that I use above is suitable for any currency trader to use.
Step 2: Clean up your charts and only trade daily charts

Next, it’s time to get your charts setup. Open the daily charts of the markets I’ve discussed above, or whichever 10 or 12 you want to follow.
The second requirement for this simple trading plan is to only look at and trade the daily chart time frames, if you start looking at the 4 hour and 1 hour charts or below, you will have broken your discipline, and I can only vouch that this plan will work for you if you follow it to the T.
Step 3: Pick one setup to trade

This step is critical; you will only be trading one price action signal for this trading routine. Last week, I wrote an article on how to master your trading strategy, I suggest you go read that before implementing the plan I’m laying out in this article. Eventually, you can try learning different entry signals, but for the purpose of this simple trading plan I am designing for you this week, you should only trade one signal. If you start to see that you’ve stopped losing money each month and that your account is growing slowly but surely after using this plan for two or three months, then you can start implementing different entry signals. But, for now, I need you to understand that you have to narrow your focus, remove variables and reduce clutter from your mind and charts to really “turn the corner” in your trading, and the best way to start this process is learning to become a master of one setup at a time.
Step 4: Follow this money management plan

For purposes of simplicity and to show you the power of risk reward, all the trades that you take while following this plan will be set at a 1:2 risk reward. That means, your profit targets will be twice the dollar amount as your risk.
The way to place your stop loss properly is to use the surrounding market structure to figure out the most logical place to put it that gives the trade the best chance at working out but also is not too far away. What this basically means is that you should not place your stop an arbitrary level because you want to trade a certain position size…this is greed, and it will end up working against you in the end. You should have predetermined your 1R risk per trade (this is the dollar amount you risk per trade), then when you find a setup you want to trade you figure out the safest and most logical place to put the stop loss…then you adjust your position size so that you are only risking your predetermined dollar risk amount.
You will place your profit targets with the aim of getting a 2R reward on every trade; that just means two times your risk. However, in placing targets you do also need to consider the surrounding market structure; if a logical 2R reward is not realistically possible because a large key level is in the way, then you might have to reconsider taking the trade.
After you figure out the most logical stop placement you will then adjust your position size down or up to meet your predetermined dollar risk amount. If you need more help on this topic of position sizing, check out this article on risk reward and position sizing.
Step 5: Track your progress in a trading journal

The next part of this simple plan is to make sure you’re recording everything in your trading journal. If you do not have one you can get a trading journal here. Keeping a journal of all your trades is probably something that many traders forget about or that falls to the wayside after a few weeks…but you can’t let it. You NEED the track record created from keeping a journal to make trading feel more like a business and to bring more of a process into your trading routine. The actual process of entering your trades and journaling them will help to keep you disciplined because it reflects back to you your trading results. If your trading results show that you’ve made emotional trading errors like risking more than you knew you should per trade or entering stupid trades that you knew you shouldn’t have…you will see these things in your journal and hopefully you’ll stop doing them.
It’s easy to be lazy and gamble your money in the markets, but when you are forcing yourself to keep a journal of all your trades you will be a lot more aware and conscious of your behavior in the market. If your behavior is that of a gambler, you will then clearly be able to see that YOU are the problem with your trading and that you need to adopt the proper trading mindset to succeed. If your trading journal begins to show a pattern of consistency in following your risk management model and your trading strategy…it will be something you can proud of…few traders have a track record that they are confident in showing to other people or potential investors. You have to use the trading journal as a tool to reinforce positive trading habits and help eradicate negative ones, and you do this by forcing yourself to manually record your trades, think about them and analyze them.
Step 6: Follow the plan

Now, clearly the plan I’ve laid out today will not work if you don’t follow it. You need to be sure that if you commit to this plan you actually follow it. Give it at least two months, and then evaluate where you’re at. Maybe you’ve stopped losing money and are breaking even now, maybe you’ve made a nice profit each month, either way it’s an improvement over losing money each month, and that is the point of the simple plan I’ve laid out here today for you; to get you off the track of hemorrhaging money from your trading account and onto the track of slowly but surely becoming a profitable trader.
Step 7: Challenge yourself

Perhaps the best way to think about the guidelines I’ve laid out for you in today’s article, is that they are a challenge to yourself. Many people have trouble completing even the seemingly simplest tasks; reading a book from cover to cover in two weeks, getting to work on time or early each day, exercising three times a week consistently…whatever the task, it can be very hard for many people to stay focused on it long enough to see its benefits pay off. In trading, this trouble with focus and discipline is an even bigger problem than in most other things we do; because in trading your hard-earned money is on the line each day.
To end today’s lesson, I want you to do something if you’re really serious about following this simple plan that I’ve laid out here today. I want you to either print out this lesson and sign the bottom of it as a pledge that you will follow it, or write yourself a little “commitment” pledge and print it out and sign it. Hang this paper on your wall next to your trading desk or put it somewhere where you will see it each day before you trade.
The first step to becoming a profitable trader is seeing if you have the discipline and patience to stick to a simple plan like this for two months. After two months, come back and leave me another comment on this article or drop me an email and tell me about your trading results.
Regards...


Copied From Nial Fuller..

Hi Guys - Sad to say I think the thread has served its great purpose but it sure looks like it has come to an end. I thought we could generate enough interest to keep it going but there are either too few members still around or there are a lot still there that are reluctant to take part by posting & chatting. Thanks to Phillip for sharing - unfortunately I have only just recently stumbled onto this thread via a link from another FF thread, so I too am new to Phillip's teachings.
I know from the past couple of weeks that following a thread & posting charts etc is very time consuming. I am lucky to have the time at the moment but without feedback and comraderie, it seems I may as well just try & learn THE RYTHYM as best I can. If anyone still has a passion to learn & share ideas on PN's method, I am happy to chat via email. Feel free to PM me and lets see where this takes us.
Thanks again Phillip - I would love to hear from you sometime.
All the best everyone - may many pips land in all of our accounts
Brian ( Binnie)

I think that this is the most effective system in Forex Factory, but it is not a fantasy scalping strategy with a lot of indicators and that is why newbies are looking for. Besides, it requires some good skills to make it actually profitable. People think that it is all about the MACD, so then they get dissapointed and run away because they dont try to learn the market rhythm.

I will be here as long as people keep posting.

if the thead dies the rhytm will live. it is been posted all over the internet. some earn money by by posting it in their site not even mentioning the real author. this thread will live if the inspiration of this thread (PN) keeps on supporting it. in any way this 1711 pages (as of now) worth of information is i think more than enough to make a good trader.

i think the one thing lacking in this thread is a real time interactivity.... in short a live chat room. where we can discuss live setups.

Hi Jet - I agree . You got any suggestions ? My personal opinion is that it could work well but we would all need to be looking at the same charts and we would also need input from members so we cover the major trading times.

You got my support buddy

Where do we go from here??

Hi Binnie and Jet, I'm very new to this thread and would very much like it to continue. Looked at all your postings from last few days Binnie- really helpful. I trade from UK so London and NY hours and would willingly post what I see. Am very (very!) new to this so excuse ignorance.

All input gratefully received!

maybe we try to start chatroom on ym. (cant install skype )

i trade asian to london close 1 h and 4 h tf

im new here too. but i think ill stick to this one. but remember before macd the market rhytm is more important so u must first learn it

There is a brilliant free website (can go paid for pro) but for small numbers of people its free.


https://join.me/

You can show your desktop to the World (or who you want to) (no webcam needed) and its got interactive chat (you can control who joins or who gets barred)

I have watched another trader show his charts and answer questions using this website.

I have never used skype for a trading chat room so cannot compare.


Sorry, just checked the website and now its only free for a trial period...sorry.. any other suggestions?