H4 Power | Page 36 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The Power Of Now 4 Forex 14 replies

Imagine a FOREX TRADERS ASSOCIATION. Imagine the Power 14 replies

Knowledge is Power 5 replies

FLAG POWER 1 reply

Keeping Some Fire Power In Reserve 0 replies

Attachments: H4 Power
Exit Attachments

H4 Power

  • #701
  • Jan 2, 2014 5:11pm Jan 2, 2014 5:11pm
My feed looks to close with a daily bearish engulf. So if I understand correctly price should reach for the weekly s/r which you can see marked on my chart. The H4 looks to close with a bullish engulf but there is daily s/r directly above so trading long not a good idea. Even though the overall daily trend has been up this daily bearish engulf seems powerful enough to take this down some more. So I'm looking to short at daily support above and then again if price breaks today's daily low. I'm on a demo here to be clear with anyone following

Your comments 60 much appreciated.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusddaily60.png Size: 52 KB
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh460.png Size: 48 KB
  • #702
  • Jan 2, 2014 5:19pm Jan 2, 2014 5:19pm
if u see monthly chart there is up trend , GU would hit around 1.7427,
so forget abt short think abt long.
only my opinion
  • #703
  • Jan 2, 2014 5:38pm Jan 2, 2014 5:38pm
Quoting shaan295
if u see monthly chart there is up trend , GU would hit around 1.7427, so forget abt short think abt long. only my opinion

Thanks Shaan. However every trend comes to an end or retraces. This large bearish engulf is saying something. Price is fractal and bounces back and forth between s/r levels. So although I anticipate a short scenario for the immediate future it may very well give us a long signal once price respects s/r then you bet I'll be getting long if price says so. Cheers!
  • #704
  • Jan 3, 2014 8:06am Jan 3, 2014 8:06am
Limit sell triggered during Asian yesterday. Sell stop triggered this morning. I'm in MST in US.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh460tradeupdate.png Size: 49 KB
  • #705
  • Jan 3, 2014 8:44am Jan 3, 2014 8:44am
Daily chart posted here but the weekly chart looks to close with a weekly bearish engulf. If this is the case then the monthly s/r is the next target.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd60monthlytarget.png Size: 52 KB
  • #706
  • Jan 3, 2014 5:10pm Jan 3, 2014 5:10pm
Nice close. Will let it ride the weekend. Happy Friday to everyone!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh4fridayclose.png Size: 49 KB
  • #707
  • Jan 4, 2014 3:09am Jan 4, 2014 3:09am
Quoting Winston Reed
Nice close. Will let it ride the weekend. Happy Friday to everyone! {image}
nice trading Winston, price definitely hinting it wants more down...
tradewith60
  • #708
  • Jan 4, 2014 7:14am Jan 4, 2014 7:14am
Quoting Winston Reed
Nice close. Will let it ride the weekend. Happy Friday to everyone! {image}
Winston,

Great entry, I actually took this trade a little too early... then I got stopped out at exactly where you entered. Then I decided to have a go at it again ... but this time waiting for prices to break support (your 2nd entry).

But here's how my chart closed - strange huh?

Could you explain your rationale for the 1st entry? Perhaps 60mm it would be interesting to hear your thoughts. I got it (1st entry) at FIB 23.6 which was also the Daily S/R you have labeled. I guess I preempted it too much and stops too close.

60mm thanks for all your postings. I've learnt a lot from you. My screenshot is a result of your teachings.

Chart TF is H4
Red/green indicator lines show Daily Engulfs
White arrow show H4 engulfs
Mini charts to get some nice context

For me it's much easier to directly trade the H4. Somehow going down to M15 keeps messing me up....

Thanks!

Kim
Attached Image
  • #709
  • Jan 4, 2014 9:58am Jan 4, 2014 9:58am
Quoting luesak
{quote} Winston, Great entry, I actually took this trade a little too early... then I got stopped out at exactly where you entered. Then I decided to have a go at it again ... but this time waiting for prices to break support (your 2nd entry). But here's how my chart closed - strange huh? Could you explain your rationale for the 1st entry? Perhaps 60mm it would be interesting to hear your thoughts. I got it (1st entry) at FIB 23.6 which was also the Daily S/R you have labeled. I guess I preempted it too much and stops too close. 60mm thanks for...

Hey luesak,
There was a daily engulf south. Then on the H4 there was an engulf north. The daily engulf suggests that price will move down to the next weekly s/r level but the H4 engulf suggest a move back to the daily s/r. So I put a pending short at the closest daily s/r above the H4 engulf which triggered. Since the weekly s/r is a ways down I put a sell stop anticipating price will move down to the weekly s/r.

I don't move down to the 15M because I can't always watch charts. Currently I'm taking trades in the context of weekly, daily and H4 engulfs. Anything below that I ignore. So if there is a weekly engulf south llke on EU then I will look for daily or H4 engulfs south. But a higher time frame engulf for me trumps a lower time frame engulf in the opposite direction. For me this is a retrace against the higher time frame and an opportunity. Hope this helps.
  • #710
  • Jan 4, 2014 10:05am Jan 4, 2014 10:05am
winston whats your view on audusd?
  • #711
  • Jan 4, 2014 10:25am Jan 4, 2014 10:25am
Quoting Winston Reed
{quote} Hey luesak, There was a daily engulf south. Then on the H4 there was an engulf north. The daily engulf suggests that price will move down to the next weekly s/r level but the H4 engulf suggest a move back to the daily s/r. So I put a pending short at the closest daily s/r above the H4 engulf which triggered. Since the weekly s/r is a ways down I put a sell stop anticipating price will move down to the weekly s/r. I don't move down to the 15M because I can't always watch charts. Currently I'm taking trades in the context of weekly, daily...
This is a great explanation Winston, you totally understand the whole concept.

Price is leaving clues by how it reacts to the SR, use that for context on your trades and it is amazingly accurate...

You're gonna make a lot of money for sure..
tradewith60
  • #712
  • Jan 4, 2014 10:36am Jan 4, 2014 10:36am
au

monthly downtrend is still in control on au, next 2 sr marked... Although we have some sr at current levels

MONTHLY CHART
Attached Image (click to enlarge)
Click to Enlarge Name: Screen Shot 2014-01-04 at 16.27.06.png Size: 34 KB


daily engulfed long and trended upto weekly sr.

DAILY CHART
Attached Image (click to enlarge)
Click to Enlarge Name: Screen Shot 2014-01-04 at 16.33.02.png Size: 36 KB


and weekly has closed as an engulf..

so monthly trend is down still but weekly and daily are making retrace moves long...

buy's from daily or weekly sr below, but be wary of monthly sr above...
tradewith60
  • #713
  • Jan 4, 2014 11:44am Jan 4, 2014 11:44am
I agree with 60. The downtrend is powerful but the weekly engulf suggests some bullishness. Friday there was H4 engulf south and it looks like this may have hit daily s/r already.
  • #714
  • Jan 4, 2014 12:37pm Jan 4, 2014 12:37pm
I'm new to this thread. I also trade J16 and have traded supply/demand methods. The concept of "engulfings" here parallels engulfings in those other methods. BUT here it has been made much clearer to me. A "light-bulb" moment as some would say. I can't say I've had one in my nearly 6 years of trading. I'm already seeing different ways to approach trading using 60s concepts. Currently this is how I'm approaching but it is likely to change.

1. I monitor the H4 on EU, EJ, GU and maybe a few others. Right now I find the analysis although logical it does require some intense thought so looking at 10 or 15 pairs would be too stressful.

2. Once I see an engulfing on the H4 time frame I look at how it occurred in the context of the daily, weekly and monthly time frames. This is crucial. Trading every engulf will get you into trouble unless you know where price is going and where it is likely to stop.

3. An H4 engulf suggests price will move to the next daily s/r level. If the price has already smacked into the daily s/r then caution and more analysis is needed. If the H4 engulf occurred in line with the daily and weekly time frame then a trade is considered depending on the r:r (how far away is the next daily s/r). For example you see that there has also been a daily engulf and the weekly s/r has not been hit yet. How far away of the weekly s/r and is the r:r worth the trade?

4. But remember price doesn't just go straight to target. It will move in steps or waves. So an engulf counter trend is likely a retrace. After a counter trend engulf I look at the s/r where price will go and then enter with the trend at that s/r. This is how you touch trade!

5. You can map out you charts ahead of time but be careful not to get too many lines as this will confuse you. I'm color coding my lines blue for monthly, green for weekly and red for daily. I don't go any lower than that.

6. In summary I focus on H4 and will take H4 engulfs towards the daily and weekly s/r and most often with trend.

Anyway, live trades are the best and right now I'm doing this on demo until I know for sure this is for me. I will post all my trades here. I'm so confident so far that if this works I will create a Trade Explorer and a journal based on this method.

Thanks to 60 for this great method.
  • #715
  • Jan 4, 2014 12:52pm Jan 4, 2014 12:52pm
Quoting Winston Reed
Nice to hear 60minuteman. I'm practicing choosing the best "higher-time-frame" s/r levels as targets for the "lower-time-frame" engulfs. A little tricky but I can see it is crucial. I'm used to traditional s/r rather than single candle s/r. Cheers and Happy New Year
Are you still using traditional S/R or you switched to 60's S/R?
  • #716
  • Jan 4, 2014 2:50pm Jan 4, 2014 2:50pm
Quoting lucariga
{quote} Are you still using traditional S/R or you switched to 60's S/R?
60s s/r
  • #717
  • Jan 4, 2014 6:21pm Jan 4, 2014 6:21pm
Quoting Winston Reed
I'm new to this thread. I also trade J16 and have traded supply/demand methods. The concept of "engulfings" here parallels engulfings in those other methods. BUT here it has been made much clearer to me. A "light-bulb" moment as some would say. I can't say I've had one in my nearly 6 years of trading. I'm already seeing different ways to approach trading using 60s concepts. Currently this is how I'm approaching but it is likely to change. 1. I monitor the H4 on EU, EJ, GU and maybe a few others. Right now I find the analysis although logical it...
Nice
I look forward to reading your charts and to diving into this .method alongside J16's ''classical'' bars & s/r.
Take care
Slow & steady
  • #718
  • Jan 4, 2014 7:27pm Jan 4, 2014 7:27pm
Quoting Winston Reed
{quote} Hey luesak, There was a daily engulf south. Then on the H4 there was an engulf north. The daily engulf suggests that price will move down to the next weekly s/r level but the H4 engulf suggest a move back to the daily s/r. So I put a pending short at the closest daily s/r above the H4 engulf which triggered.
Winston,

Ok this really clears it up for me. There were many setups just similar to the GU last week. My question has always been... "when will the retrace stop" causing me to be unsure about where to put the pending order.

Your clarification makes sense.

Thanks!

Kim
  • #719
  • Jan 4, 2014 7:37pm Jan 4, 2014 7:37pm
Quoting 60minuteman
au monthly downtrend is still in control on au, next 2 sr marked... Although we have some sr at current levels MONTHLY CHART {image} daily engulfed long and trended upto weekly sr. DAILY CHART {image} and weekly has closed as an engulf.. so monthly trend is down still but weekly and daily are making retrace moves long... buy's from daily or weekly sr below, but be wary of monthly sr above...
60,

I've read your PDFs and watched the videos on your site. However, I'm still unclear where to draw the S/R lines. I tend to end up drawing them everywhere... and then the R/R becomes ridiculously low. At some point some where you were explaining to another person that you only needed to draw the next couple... which makes sense. But even then... so here're my questions:

1. Do you draw S/R at previous Low/High? E.g. is yesterday's low/high a S/R that you would draw?
2. Or only draw S/R if it's some kind of swing bounce? i.e. prices 2 bars ago made low, 1 bar ago didn't break the low.
3. Or do you just draw them at "more obvious" points (kinda like the traditional method of spotting S/R) if you know what I mean.

Also, when prices approach the S/R how watch do you watch for to see if it will hold or break?

Thanks!!!

Kim
  • #720
  • Jan 4, 2014 8:00pm Jan 4, 2014 8:00pm
60, Winston,

Please let me know if I'm reading this right.

Screen shot below is the EU H4 (ss1.png), EU D1 (ss2.png), EU W1 (ss3.png). As you can see I took a short at the green line as prices broke the S/R. That was the break of Daily S/R. Therefore it is likely that prices will move down to the weekly S/R. However, the mini chart for W1 is also showing a weekly engulf. Which means we are now heading south for the MN1 S/R.

That said, please take note of my (puny) target... which was almost hit at the close of Friday. Now that I have a chance to reevaluate I would like to see what your thoughts are.

The reason why I put the target there is because there's some kind of S/R shelf as can be seen in the screenshot1.png (circled and purple underline). Like you said, 60mm, 2 ways to reduce fear of losing... I chose to win more often rather than large stop loss. So in case this turned out to be something significant, then I'm already out, I can take a breather and enter again if PA+S/R, R/R looks right.

What do you think? Would moving down to at least the weekly S/R be a more suitable target in your opinions? As you can seen the weekly S/R is quite a ways away (last screen shot blue line) <--- let me know if I didn't draw it right!!!

Thanks


Kim
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 99 KB
Attached Images
0 traders viewing now