Disliked{quote} With the Auz/Nzd I am looking at the same thing as you. 4h macd rules state, break of 21ema, pullback to 21ema, move to 89 sma. Whilst this might seem set up in the 4h chart if you look at the 1h chart you will see you would be breaking the rules of market rhythm by buying here. Price has broken the 21ema in 1h, pulled back, so now we would assume it will move back to the 89sma before it will head higher. Daily is set for long breakout so I am waiting for a pullback to the 89sma in the 1h before looking to buy in. {image}Ignored
4 Hour Strategy (MACD)
- #28,262
- Aug 21, 2014 7:22am Aug 21, 2014 7:22am
Richard, You commented about how the abc wave fit into the 4H MACD system. Actually, I stumbled upon this a day after I figured out the wave system. If you read and re-read Jonny's posts, he has explained it rather thorough. Here is how I have understood it: 1. You do your analysis as per 4H MACD. 2. On H4, when price is pulling back to 21ema you flip to H1. See if the price in H1 is moving from 21ema to the 89 OR 200sma (which normally does) 3. When the pull back to 21ema on H4 is complete, flip to H1 if price has moved to 89 or 200sma, the wave...
Yes that essentially is how I personally time my 4h macd trades and it helps me to 1) filter out early entries - 2) reduce my risk and increase potential profit by entering on the smaller 30min/1h candles. 3) Gets me into the bigger moves*
*You will sometimes see in the 4h it pulls back to the 21ema then the entry candle just explodes away from the 21 ema and you have to just sit there and watch it go. Checking the lower time frames helps you get into these moves early. (Although Phil sets this out in many previous posts. He uses lower time frames to enter.)
Where would your stop loss be now if you had already jumped in? Just under wave a presumably?
- #28,263
- Aug 21, 2014 7:40am Aug 21, 2014 7:40am
{quote} Thanks. And looks like I am not familiar with drawing the wave. A little unsure how it's at the moment. But will have to figure it out. Thanks Jonny and please keep posting feedback to me.
You will find it easier and easier the more you see it happen. I have spent a long, long time going through all this stuff so I see it easier now. But it can be confusing at first.
Just remember-
Wave a is the first "move" towards the 21 ema in the 4h chart. It starts at the lowest or highest point and as far as I know is impossible to trade as price can reverse at any point. This is usually 1 move through the 21ema on the lower charts.
Wave b pullsback to 21ema
wave c can extend to the 89 or 200
So if you always look for the lowest (in a down trend) or highest point (in an uptrend) that is where you start the first counter trend move of wave a from
You can see it looks to be playing out in the eur/usd at the moment
- #28,265
- Aug 22, 2014 1:27am Aug 22, 2014 1:27am
{quote} No problem Nic, I am happy to help in someway if I can
Thanks Nic for an explanation in nice easy understandable English....(i believe English is not your first language, so it's even more impressive, big thanks)
JP..
I saw the Euro before i read your post, so it's almost identical to your post but is this near a perfect set up with your m30/h1 a.b.c back to 89/200 before the TC on H4.
ps...I always thought the deep/high macd was the change of trend but that is just a warning that it may be coming after the next wave(5), i have got burnt so many times doing CT's on that picture...what a plonker..can't believe the penny has just dropped after so long trading the system...bloody idjust I am
Thanks for all the help....I have got motivated again now i can hear the drums and almost feel the beat of the rhythm..
- #28,266
- Aug 22, 2014 1:41am Aug 22, 2014 1:41am
Hi all, How are you doing lately? We are having a rough election moment here in Indonesia. Well, the court has already won Jokowi couple. Being a silent reader lately, but still lurking the chart by using 4H MACD set up. Catching the spark of wisdom from all of you. It is nice to have a home in term of trading community. I have pay attention to what develop lately in USDJPY. Especially in D1 and W1 timeframes. In D1: The price move smoothly in the median lines provided, broke the upper line with a strong move upward lately. The price seems to hit...
Howdy........ I don't know about your politics at home but good luck with 'em... probably just a bunch of thieves, liars and money grabbing bastards just like the British politicians...(harsh but true) just my opinion based on public facts (Iraq war/MP's expenses/Tony Blair now running around the World like a saviour and he got us into this mess). ggggggrrrrr don't get me started
Good luck anyway...
My new found wisdom in trading is telling me that after the correction you are talking about there will be another push up..... then onto JP and his a.b.c on a lower time frame...
- #28,268
- Aug 22, 2014 6:04am Aug 22, 2014 6:04am
Pulled the trigger early on a sell on the Euro. Testing my new found little dangerous knowledge.... Looking for that a.b.c on the lower time frames to support the H4 move. H4 deep macd...retraced back to zero (boz) Price just under a BRN and a previous support level. Price tabbed the 21 Lets see a TC down to the previous low. H1/M30...both showing a.b.c pattern up...just waiting for the leg D...down down down.... {image}
This is how I see it, slight change of plans for me.
It did play out similarly but there is a slight difference. If you look in the 30 min it pulled back to the 89sma/fib extension in 5 waves, not 3.
We know what we are looking to trade here is a pullback to the 4h 21ema
Without getting too complicated, the fact it pulled back in 5 waves not three suggests to me that it is wave a on the 4h chart which means we have probably still got another B and C wave on the 4h chart yet to come.
So essentially it now looks like this is going to be (in 30min chart) a break of 89sma, pullback, move onto 200sma trade. (rather then heading straight down from here)
Or on the 1h chart if you prefer, it seems to still be in the process of making the move - break of 21ema, pullback to 21ema (happening now), move to 89/200sma
So my bias at the moment is potentially looking to catch a quick long trade up to around the 200ma (in 30min chart) this afternoon. Possibly look at a short on monday.
Please remember though this is only my opinion of what I am personally thinking. I'm not making any recommendations to take or not take trades
- #28,269
- Aug 22, 2014 8:28am Aug 22, 2014 8:28am
Hello,
i just entered a trade. Would like to post some of my Trades for you guys to spot my mistakes and get better at trading.
I entered the trade, because we broke the low on the daily-chart and the MACD was showing a TC. If i watched the H1 i could have entered a bit earlier.. should i always wait for the MACD on th 4 hours to give a signal, that will probably appear and then switch to the H1 and trade the MACD-Signal there?
The RR for the first partial profit ist not that much good, but if the course reaches the first target im going to put it breakevenand let it run til the next psychological boundary.
Maybe i should have waited for the speeches from Yellen and Draghi, i dont know.
What do you guys think?
By the way, to combine the 4-Hour Strategie with the elliottwaves is a brilliant idea.
best regards
i just entered a trade. Would like to post some of my Trades for you guys to spot my mistakes and get better at trading.
I entered the trade, because we broke the low on the daily-chart and the MACD was showing a TC. If i watched the H1 i could have entered a bit earlier.. should i always wait for the MACD on th 4 hours to give a signal, that will probably appear and then switch to the H1 and trade the MACD-Signal there?
The RR for the first partial profit ist not that much good, but if the course reaches the first target im going to put it breakevenand let it run til the next psychological boundary.
Maybe i should have waited for the speeches from Yellen and Draghi, i dont know.
What do you guys think?
By the way, to combine the 4-Hour Strategie with the elliottwaves is a brilliant idea.
best regards
- #28,272
- Aug 22, 2014 1:39pm Aug 22, 2014 1:39pm
{quote} Thanks...Until i get my head around the basic waves, I am focusing on the high/lowest macd as wave 3... It will take me a few weeks of reading, watching vids etc to get the waves. Big thanks, as you have made reading the charts much easier for me...
Still havn't been convinced by the down move in the eur/usd, some news came out earlier which pushed it down however I still think it's set to go back and tag the 200sma in the 30 mins before if goes down again next week
- #28,275
- Aug 25, 2014 9:27am Aug 25, 2014 9:27am
Does anyone have time to answer this? Did I draw the wave correctly? {image}
Hi Nic,
sorry I cannot help you on that one. I use only the 4 hrs strategy including the figures(RT, RB, SHS,etc.)- I have never quite understood the idea on the elliot waves.
Yvon
- #28,276
- Aug 25, 2014 9:31am Aug 25, 2014 9:31am
Hi all, How are you doing lately? We are having a rough election moment here in Indonesia. Well, the court has already won Jokowi couple. Being a silent reader lately, but still lurking the chart by using 4H MACD set up. Catching the spark of wisdom from all of you. It is nice to have a home in term of trading community. I have pay attention to what develop lately in USDJPY. Especially in D1 and W1 timeframes. In D1: The price move smoothly in the median lines provided, broke the upper line with a strong move upward lately. The price seems to hit...
nice to hear about you! glad you are doing well, keep doing the good work!
Yvon
