H4 Power

GU's H4 engulfs short, I so M15 engulf short

nice stuff Mike no surprises the weekly short continued....

wouldn't be surprised if we see that next monthly SR marked

that monthly sr would be a great target 60, so I've just added another

The funny thing about this method for me is that I can spot engulfs easy enough - and I have had some success identifying potential monthly and/or weekly SR, but I always seem to choose the pair or pairs that don't follow thru as desired. And the pairs I didn't place orders on move like crazy...

I thought I spotted a weekly engulf long on the AU - the h4 then engulfed long also. I entered, and the AU dropped today.

Thank you CPI...

Hi Tradebry,

This AUDUSD is a bit tricky. When you take a look on Monthly, you can see it engulfed short, so look for daily engulfed to confirm it in August. I think today is that day and we can expect it moving south for next months.

Kapy,

remember it is not just about engulfs - all the engulf says is that price will move to the next TF up SR. Whereas a close up says same TF SR.... from that starting point we can use the timeframes to map out the likely direction and stopping/turning points.

Thanks 60MM,

I will keep that in mind - the frustration really happens for me when I choose a pair based on SR and an engulf, but out of multiple such pairs, I seem to pick the wrong one to trade, or I enter the trade at the wrong time...

Nobody's perfect - especially me. I'm not giving up though.

Bry

Bry, I know exactly what you mean, and we all fall into that trap.
If you absorb 60's signature message "'It's very hard to maintain a grasp of the obvious at all times'", then go to GBPUSD and NZDUSD for example on the daily timeframes, then look at the AUDUSD daily timeframe, you should be able to spot the pairs that are trending and you should be trading, and maybe one that isn't

Cheers

Mike

Thanks for your input, Mike. So are you mainly trading this method as D1/H1 versus the W1/H4?

Bry, to get the best context, I find it best to start at the top and work down, so always monthly, weekly, daily etc. When looking at pairs which are trending strongly, I find it easier to see the sr and the next logical direction when lower tf's turn.

When price isn't trending, there is so much sr above and below (monthly up, daily down, H4 up, H1 down), it is (for me) confusing as hell to work out where to trade

When I see a weekly engulf in a strongly trending pair for example, I then draw in the sr as the ideal places to trade from, using the lower and lower tf's to enter the trade. So if weekly engulfs, draw in the monthly sr and either use H4 on it's own, or H4/M15 - always from the higher timeframe though.

Hope that helps

Mike

That makes sense; it should be obvious to start by identifying trending pairs , but as you quoted 60M earlier, 'It's very hard to maintain a grasp of the obvious at all times'...

So, if you start with the monthly chart and see no trend in place, do you then drop to the weekly and again to the daily if necessary until you find a trend? When do you stop and move on to another pair? And if you see 2 or more pairs with trends in place, would you suggest giving preference to the pair with the higher tf trend? Or to the pair that engulfs first?

Well, as they say, "beauty is in the eye of the beholder" - I've learned that if it isn't pretty obvious to me, I need to avoid it because I end up losing money.
Saying that, H4 Power has been put forward by 60, and knowing he's far more adept at this than I, the AUDJPY may look like a walk in the park to him - it's really what you see in front of you that I find important (hope that makes sense).

If you look at the weekly and there's no engulf, then you use the open, high, low close in that timeframe as your sr to trade from as we assume price will keep going in the same direction to the next timeframe sr - if it has engulfed, then go to the monthly and mark the sr where price we hope is expecting to go to - if price has already touched it, or is too close, don't trade - give yourself every chance.

So my advice would be, if you can't see it, don't gamble your money. Looking at the charts now, EURCAD monthly and weekly is trending down (should be looking to put in the sr and lower timeframe trades) and USDJPY on the higher tf's starting to make a move up

Although H4 Power is a simple concept at first view, its actually taken me a few readings of the main points and some time to become proficient which is happily reflected in my account growing.

Starting at the weekend works for me when the market is closed, open the charts, see which pairs are trending and which have engulfs and which haven't and are still moving to the next timeframe sr (you can still continue to trade them until they engulf the other way) - starting the trading week with all your sr and plans in place is a must in my opinion. I do that till the trades have played out in the coming week, then for me I close the charts and take time away until the next week. H4 flow which is a thread 60 started is also great for long term plays, I'm working on that too

I very much appreciate your time here Mike. Thanks for sharing - I will take it all to heart. Simplest is best.

Hey 60MM,

I hope all has been well. I recently read thru your weekly/h4 trend trading thread - I can see using a hybrid of the 2 methods. I can't thank you enough for sharing your ideas with us all. I am looking forward to gaining more proficiency with them. I was wondering about your post 151 in that thread; you mention using an alert that informs you when an extreme has been made and then a close opposite to it. Is this a generally available alert or something proprietary that you created? Can you share it here? For someone with a full-time job (like me!), such an alert could prove invaluable. Can it be used as an email alert that would draw me back to my charts?

Thanks,

Bry

and there we go...

I learned a lesson about participation and anticipation this week. I was expecting the gbpcad to turn Long as it reached a weekly SR, so when a h4 engulf short happened, I wasn't prepared. Wow - I missed +200 pips...

2 weeks GCAD hit a monthly support and still closed down - the sellers were still in charge - target next monthly

Thanks 60M, you're right - Obviously... Hey, do you still trade the method you describe in your Weekly/H4 trend thread, or is H4 your primary method currently?

Bry

Sorry, I meant is H4 Power your your primary method currently? I know they're related, but the Weekly/H4 Trend thread is more about holding for larger RR...

Bry