Learn how to master forex trading with our complete guide. Let me explain… The daily closing price in any market, be it forex, stocks, commodities or cryptocurrencies displays who won the battle between buyers and sellers for that session. Traders who are planning to use the h4 forex trading strategy need to have the correct New York closing charts.
If you want the identical price action on your charts as we have them, you should use the New York close charts. Taking care of this type of detail while it might seem unimportant it can make the difference between winning and losing. Traders can use these 4-h candles to find potential new trading opportunities.
Best H4 Forex Strategy The H4 trading strategy revolves around a very common chart pattern known to the technicians as the Doji candlestick. Now… The Doji chart pattern can take many different shapes and forms. The figure below shows the standard Doji setups. The main characteristic of the Doji is the small body where the open and the close are very close together.
However, the hanging man, shooting star, bullish and bearish Harami, inverted hammer and dark cloud are considered to be variations of the standard Doji pattern. The Doji candle pattern is only one part of the overall Doji Sandwich trade setup. Followed by the Doji candle. Another large candle is of the same magnitude as the first candle. And, this is what makes the H4 forex trading strategy very effective. This will produce a high probability reversal setup.
When you combine the Doji candle with the nearby candles we have a recipe for success. This simple trade setup on the 4h chart, will almost double your success rate. Now, here is the thing: The truth about trading is that no matter what trading setup you use, there will always be false signals. See below: Filter Your Trading Setups with Stochastic Indicator The overbought and oversold conditions are based upon the stochastic indicator.
See the chart: The Doji Sandwich pattern meets all of our requirements: The first candle and the third candle are more or less of the same length and point in the same direction bullish flag chart pattern. Second, the middle candle is a Doji candle. Moving on… Spotting a chart pattern is only half of the equation; we also need an entry technique for our H4 trading strategy.
See below: There are two ways to enter this trade: You can buy sell as soon as the 4th candle opens. Wait until the high low of the third candle is broken. We have used both types of entry techniques to take advantage of high probability trades. See below: How to Manage Your Trade? The following moving averages are used by the H4 trading strategy: The moving average. The period simple moving average SMA. Every major money manager in the world uses those moving averages to make informed decisions about their portfolios.
Now… Here is how we use the moving average : The MA is only used for long-term guidance and to decide how long are we going to stay in the trade. However, if the pattern develops above the MA, we want to stay with the trend and ride that wave to squeeze as much profit as possible.
What we look after is for the price to break above the 50 MA either within the first candles after we entered the market or during the development of the Doji Sandwich pattern. See below: Stop Loss and Exit Strategy First, the protective stop-loss trading strategy is placed below the Doji candle, which is the middle candle of the 3-bar pattern used. That's a mindset any ambitious trader must have!
And it starts with making enough money for your day-to-day. They say this exact thing month after month, and they're never moving ahead. I don't want this to be an issue for you. I'm a swing Forex trader who has the chance to travel the world anytime and help aspiring Forex traders develop a trading method that works for them so they can produce income allowing them to live with more freedom.
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HJ ROSLAN FOREX
Remember those who lose money in currency trading; most of the cases trade too many times in a single day. Losers tend to trade on a shorter time frame like 15 minutes, 5 minutes, or even shorter, like 1 minute timeframe. They think that the more they trade, the more they will be able to make money, which is a complete lie. The true fact is that the more they trade, the more they lose. Today in this piece of content, our goal is to focus on 4 hour time frame trading, which will allow you to trade the markets around the clock actively.
In the forex 4h trading system, you will be benefitted by getting data from intraday charts along with big pictures trends. No matter whether you are a swing trader or position, then a 4 hour timeframe best suits you. Why is the 4 hour forex simple system so important? If I ask you, why do you trade forex? Most probably, your answer will be to get rid of anxiety from the financial crisis. Only if you trade in a larger time frame, then you enjoy more freedom which is possible here in a 4 hour timeframe.
Risk is little here. The potential of making a big profit is enough here. The settings will be as it is found by default. We use this indicator as this one is one of the best 4 hour trading indicators. Buy trading rules: The rsi must touch the 30 level line.
Then we will wait for any strong bullish candle. When we find a bullish candle, we will open a buy order just above that candle. Then found a bullish green candle. This is your trading signal. The crossover of blue moving average and red moving average indicate the change in the direction of the market.
The other two, dotted moving averages crossovers generate the trading signals. RSX RSX is a technical indicator which consists of histograms that fluctuate in positive and negative territory. You should be buying when the histograms are in positive territory and you should be selling when the histograms are in negative territory. The dotted moving average should cross above the other dotted moving average. The red moving average should be above the blue moving average.
The RSX indicator should be in positive territory. Place your long position as soon as above conditions are met. Place your stop loss just below the recent swing low. Take your profit when the RSX histogram moves in to the negative territory. The dotted moving average should cross below the other dotted moving average. The red moving average should be below the blue moving average.
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