Powered by WordPress Designed by: Download a template for Metatrader 4 — trend finder 4hr. But, I also have price action strategies which are completely quantitatively based over 10 years, meaning the statistical edge has been demonstrated over the last 10 years. I'm a verified profitable trader and trading mentor. Want to improve your trading edge and mindset?
That communicates there were more players and more money behind this move. But do this for 4hrs and sustain it into the close, and we are talking more participation, orders, money and participants. For price to sustain a particular price action move for 4hrs means no matter how many players, sentiments, and ideas there were participating in the market, the dominant theme held for half the trading session and quite a long time.
But on a one min time frame, a 5min, or even 30min time frame, these moves could be simple noise which can move the market up to 30pips without having any major force behind it. Think about how many 5min candles in between the NY close and Tokyo open and how much order flow will really be behind that? Think about how many 1min and 3min candles will be between the 3rd and 4th hours of the london session where volatility and pip ranges generally decrease and how they will represent less order flow and participation.
Then you will see how ineffective these candles can be and how what your reading has very little meaning. Think about it, if price holds inside the previous price range on a 5min candle, that could mean almost anything and be the result of a laundry list of order flow environments and situations.
But apply an inside bar on a 4hr time frame, and you are talking 4hrs of price action being held in a range for almost half an entire trading session. That means no matter how many players participated in the market, nobody was able to break the previous price range for an entire 4hrs which tells you a price was pretty suppressed, b very little directional control in the market, c very little participation. That is much more communicative in terms of information than any passing 5mins.
Technically, for an inside bar pattern, you would be basing your decision on 8hrs of price action since an inside bar pattern is a 2bar pattern thus 8hrs , so there is a lot more information in this then an inside bar pattern on a 5min time frame 10mins of price action.
Furthermore, to get any real significant amount of data with confirmation and continuation of the order flow and price action , you need far more 1min, 3min, and 5min candles to make sure the noise is filtered out.
That means more moving parts and more variables to manage. Contrast to the 4hr chart where one candle or two can give you all the information you need to make a trade while filtering out any noise and meaningless price fluctuations.
This will give you less confusing information in the beginning, and teach you how to be patient with your trading. One can trade price action on any time frame and make money. In fact people are making money on almost every time frame available.
Just understand you have to increase your price action skills and ability to read price action context before trading lower time frames. For other traders it does, so the key is finding what works for you. Also make sure to check out our most recent article on Price Action Trading. I'm a verified profitable trader and trading mentor. As a professional trader, I specialize in trading Price Action and the Ichimoku cloud. As a trading mentor, I have one goal: Want to improve your trading edge and mindset?
Check out my trading courses here. With the 4hr chart, only 6 per day. So overall, much less work, yet still enough to keep you active on a daily basis. Some people state the NY Daily Close is the best. But statistically, this time fails for many patterns and pairs. In fact, a pairs performance can vary wildly for the same price action pattern across different server times. Imagine you are trading an inside bar pattern on the daily time frame for a certain pair, based on the NY Daily Close.
Would you want to know that before trading it? Some pairs did statistically better across several server times, but completely failed on another for one price action pattern. Yet on the same server time they failed on for pattern A, they profited highly on for pattern B. Volatility and order flow for that pair in relationship to the sessions. That plus the type of pattern all played a part.
Information is key here. In Conclusion For those of you who have very busy lives, with a full-time job, family, and general commitments that you are unable to sit and trade for hours, there is a way for you to trade and participate in the markets, while not having to stay up all night.
For this, I recommend trading Daily and 4hr price action strategies that are rule based, easy to manage, yet allow you to be engaged in the market and able to make money.
Generally set and forget strategies will be easiest to manage, while also making sure the server time is appropriate for your strategy.
If you have all those in place, then you can trade on a weekly basis, make plenty of trades to be engaged, not have to hold positions for days on end to see a result, and only need a few hours to trade per day.
I hope this helps for all of you who fit into this category and that you found this article informative and useful. I'm a verified profitable trader and trading mentor. As a professional trader, I specialize in trading Price Action and the Ichimoku cloud. As a trading mentor, I have one goal: Want to improve your trading edge and mindset?
Check out my trading courses here. The information contained in or provided from or through this site is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The information on this site and provided from or through this site is general in nature and is not specific to you the user or anyone else.
Trading may not be suitable for all users of this website. Anyone wishing to invest should seek his or her own independent financial or professional advice. If you sign up for the service offered by the site, we may receive a 1x fee under specified conditions.
We simply receive a 1x fee for you signing up and funding a new live account under specified conditions. Sign up now to receive a free ebook on How to Get an Edge trading the Forex markets. As a bonus for signing up, you will also get exclusive access to our monthly newsletter, which contains insights not published on the website.
A rule based strategy generally goes something like this; Conditions A, B and C have to be in place to make a trade.