4 Hour MACD Forex Strategy
This is a solid method that is very profitable that focuses on the 4hr and 1hr timeframe using MACD histogram patterns and basic moving averages. The method has almost 8000 posts on the thread. All the information can be found at the link included here. I'll stop back by a little later to answer any questions. The website requires no email or registration whatsoever, it's all free. 4 Hour MACD Forex Strategy
Thanks much for all the time and work that went in to this site, and the generosity it reflects in sharing it.
Thanks for the comment. It really is about giving something back.
"I finally found it."
Last week I made 95 on the $Yen. 25, then 50, then 25. The risk is generally around 30 pips, or where the previous low was. I never risk much more than that. If I'm 'curious' about something, I'll trade a 0.1 lot as a just to see what might happen thing. It's easier to gauge per month because I only follow the $Yen and the EUR$ so if the market is ranging for a few days a there may be only one signal that week. If I'm in 'good' like up 30 or 40 pips on a trade I usually exit one or two with that and let the other one ride a very minimal trailing stop like a 30 or 40 pip one. Sooooo, the per month range has been between 100 to 600 pips. August made my year so far, that was the 'fat' month, downtrend the first few weeks then up for the next two. I would say that the per month average is around 250 or so. I'm heavily involved with the thread over at the Forex Factory. I'd like to say again that it is not my intention to divert traffic away from this site. I'm just spreading the news about the method. Everything on the site is free. It's really worth taking a look at. I put the site together and I'm in touch with Phillip a few times a week about suggestions or improvements to the site, not the method. He introduced the method back in January and nothing has been changed with it at all. If you look under the Tools link on the website there are two .pdf files with charts from the beginning of the year through the first week of October for the EUR$. Download those and print them out after you have read the .pdf for the method. It's really good stuff....
hello Palmer,
thanks for starting the discussion on this thread for the benefit of this forumers.
By the way i am also following this method but i tend to take too many false signals or i get knocked out of the trade because iam not too clear on the TP and SL . Can you please help me out as iam trying this on the live account.
Thank you for your help
teldon:
After a round top (Rt) or round bottom occurs (Rb) your first profit target should be the 21 EMA area. The second profit target is the 89 SMA area. The third target is the 200 SMA. But, the 200 SMA is usually a pretty good distance away if the market has been trending for a while. This is why it is a good idea to have your trendlines drawn and support/resistance areas. Also, if a previous s/r area was a 'tough' barrier, even if it's an 'old s/r' area, that should be considered a target as well. Once my 21 area is hit, I'll either move my stops up on my remaining lots or move them to break even. If it was a good move to the 21 I'll more than likely move things to b/e. As far as your stop loss, it should be the low of the previous candle before the signal occurred or in that area. The risk:reward should be at least 1:1. So, if the 21 ema is 30 pips away your stop should be no more than 30 pips. But, markets do need room to breathe and nothing is perfect. If the 21 is say 20 pips away I'll give my stop a little more room than 20 pips...just because. If my 21 EMA is say 35 pips away, I'll take profit when price is in that area...25 30 pips or so. I hate giving anything back. Pips in the bank are pips in the bank. When the market starts trending well and the rhythm strength is strong and your still in, place your stops just under (if long) the 21 EMA. If you get stopped out, then look at the 1hr charts for a trend continuation signal to re-enter the trend.
thanks very much for the info,
the blog has market rythm strength, +2,+1,0,-1,-2. Is there a indicator which gives these numbers. Please explain.
teldon
you said in your first post that this method uses 4hr and 1 hr chart. can you please explain the use of 1hr chart.
thx
Normally in order to catch the big pips we should use 4H or 1 day time frame.
teldon:
There is an indicator to download on the website that a member put together that displays the Rhythm Strength in the lower right of the window. It's on the Tools link page.
The 4hr chart is the heart of the system. This is where the MACD formations (signals) are taken from.
The 1hr chart is for the trend-continuation signals, to re-enter a little sooner vs. waiting on the 4hr chart for a signal. The 1hr chart should not be used for the MACD pattern signals.
For the week, there have been no entries in the EUR$ and $Yen. Those are the only two currencies I follow. Not sure about the other pairs. But, based on the low postings on the main thread, everything may be stuck in a range right now...at least on the 4hr charts.
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This is a solid method that is very profitable that focuses on the 4hr and 1hr timeframe using MACD histogram patterns and basic moving averages. The method has almost 8000 posts on the thread. All the information can be found at the link included here. I'll stop back by a little later to answer any questions. The website requires no email or registration whatsoever, it's all free.
4 Hour MACD Forex Strategy