Best strategy to trade forex on 4hours time frame

Best strategy to trade forex on 4hours time frame

With this strategy, the main goal is to exploit the popular saying in the trading world “the trend is your friend”. This swing trading strategy uses a combination of moving averages, support and resistance, volatility and a few other tools to maximize profits from the trends in the Forex market. At the same, the strategy aims to keep stop losses and drawdowns to a minimum. Although this strategy can work well on all timeframes, it is best 21/01/ · Philip Nel started a thread at ForexFactory forum discussing the 4-hour MACD Forex Trading blogger.com is an impressive forum thread. It began in and it is still active now. (It has pages and growing.) This trading strategy focuses on finding patterns (for e.g. double top and head and shoulders) on the MACD blogger.comted Reading Time: 4 mins This Forex Momentum Trading Strategy is a trend momentum strategy based on Alligator and Double CCI Indicator. High accuracy Forex H4 Swing Trading Strategy with Moving Averages and Trigger Indicator – It can be extremely difficult for new traders to finalize a trend trading strategy for trading the Forex

TOP 5 BEST Forex H4 Time Frame SWING Trading Strategy | Forex Online Trading

This swing trading strategy uses a combination of moving averages, support and resistance, volatility and a few other tools to maximize profits from the trends in the Forex market. At the same, the strategy aims to keep stop losses and drawdowns to a minimum, best strategy to trade forex on 4hours time frame. Although this strategy can work well on all timeframes, it is best to be used on the 4h timeframe, which makes it highly suitable for swing traders.

In this strategy, the 4h chart is used as the base chart this is where we screen for potential places on the chart where trading signals may occur and the 1h timeframe as the signal chart, or the trade chart where we execute orders according to this strategy. If you choose to use a different timeframe as the base chart remember that you go one timeframe lower for the signal chart so if 1h is the base chart then the 30m timeframe is the signal chart.

We need to have a trend. This strategy rests on trend behavior and without one it basically can not be used. To determine if there is a trend or not we are going to use a set of two moving averages, out of which one is a 34 period and the other a 55 period MA.

You may notice that these numbers are part of the Fibonacci sequence. We can judge if a trend is worth trading or not by observing how the moving averages relate to price action.

Note : For this strategy feel free to experiment with different types of moving averages like simple, exponential and weighted. EURAUD 4h — A strong downtrend in provided several great opportunities for this strategy. As can be seen from this EURAUD chart, the price tends to bounce off the two moving averages. Basically, the moving averages are a support zone during uptrends and a resistance zone in downtrends.

It is around and inside of this moving average zone that the best trading opportunities for this trend trading strategy are to be found. We are trying to profit on the swings in the direction of the trend. So, for this reason, we want to join the trend on the retracements. AUDUSD 1h chart - Example of an entry with using this trend trading strategy.

Take the EURUSD pair which has about pips usual daily range. So, best strategy to trade forex on 4hours time frame, in total the stop loss, in this case, would be 32 pips. Here is how this strategy works:. Because this is a trend trading strategy we will use a trailing stop for exiting the trade.

This allows us to profit on a bigger part of the move. The blue arrows are the starting point of the count and the line is the stop loss placement for that point in time. The numbers are an example of how to best strategy to trade forex on 4hours time frame the candles to determine the stop. You can see here how lower highs are left out until the next higher high backwards is found.

EURUSD 1h chart. Notice how the manual trailing stop allowed the trader to capture almost the entire move on this chart. Best strategy to trade forex on 4hours time frame are exited only when the price moves above the blue line which happened once on this chart in the first case on the left side.

If you find it helpful some backtesting on past price data is a good way to learn and master this trend following strategy as well. Sponsored by. Our Very Profitable 4 Hour Chart Trend Following Strategy. START TRADING.

Best Time Frame For Swing Trading Strategies

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Forex 4 Hour Chart Strategy - Forex Trading 4 Hour Time-Frame - Forex Education

With this strategy, the main goal is to exploit the popular saying in the trading world “the trend is your friend”. This swing trading strategy uses a combination of moving averages, support and resistance, volatility and a few other tools to maximize profits from the trends in the Forex market. At the same, the strategy aims to keep stop losses and drawdowns to a minimum. Although this strategy can work well on all timeframes, it is best 07/06/ · This article will explain the entire technique for trading that takes only 4 hours a week from the investor’s schedule, known as the forex 4 hours chart. Moving forward, this is a strategy that can be used to target long momentum and shifts 21/01/ · Philip Nel started a thread at ForexFactory forum discussing the 4-hour MACD Forex Trading blogger.com is an impressive forum thread. It began in and it is still active now. (It has pages and growing.) This trading strategy focuses on finding patterns (for e.g. double top and head and shoulders) on the MACD blogger.comted Reading Time: 4 mins