Anyone Trading on 4hr Charts ?

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Iqbal

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I would like to start a thread on strategies of trading 4hr charts, there is a lot on this forum about shorter time frame trading i.e 15min,30min, 1hr, but not much is mentioned on longer timeframes.

Does anyone trade these 4hr charts ? what systems do they use? what are the advantages ? what are the downfalls? what M.A's suit this timeframe? average stoploss?

I'm currently trading 30 min and 1hr, but would like to exlore the longer time frames. I would like to hear peoples experiences.

Thank you in advance.
 
4 hrs is an odd period to choose and possibly only suitable if the daily session is a multiple of 4 or if the product trades 24hrs. I do wonder if there is any merit in timeframes between hourly and daily. I have not investigated this myself so would also be interested to know if anybody has found an edge here.
 
Iqbal said:
I would like to start a thread on strategies of trading 4hr charts, there is a lot on this forum about shorter time frame trading i.e 15min,30min, 1hr, but not much is mentioned on longer timeframes.

Does anyone trade these 4hr charts ? what systems do they use? what are the advantages ? what are the downfalls? what M.A's suit this timeframe? average stoploss?

I'm currently trading 30 min and 1hr, but would like to exlore the longer time frames. I would like to hear peoples experiences.

Thank you in advance.
Click to expand...

The Banks watch the 4 hour TF
 
Which banks? Not the ones I speak to, unless it is their little secret.
 
I have traded 4 hour charts on the euro/dollare and cable for the last couple of months now and have found my happiest trading style by doing so. I don't use MA's so couldn't offer any answers there I'm afraid.

I find it so much easier and better (for me) as it gives me alot more free time and I would rather trade 3 times a week and make 100+ per trade, rather than be stuck in front of my computer all day and making numerous trades. It can be annoying as I do need to see the market at any given time 24/5 but these days its not a problem with handhelds like the XDA. I can watch the chart from the pub/golf course and phone through orders as need be. I just love the freedom it gives.

It used to bore me making 15/20 pip trades and then losing the same ten minutes later and wasting all my time in front of a screen. That's not why I started trading. If I do feel like more shorter time frames I occasinally will but not often.

Also I find the time frame alot easier to trade and to see the bigger picture and more important S/R levels.

I'll attach a couple of charts when I get a moment.

Chris
 
Id like to echo chrisw's comments.

I position trade and use a weekly/daily chart for direction and the 4 hr chart for entry. Price only... no indicators..

Im not so sure that theres an 'edge' other than things are damn sight smoother longer term and not as as stressfull..i guess what im saying is it suits me.

Just mho.
 
Interesting...I always used an hourly or shorter for entry. chrisw, please find the time to post a couple of examples that you consider show a destinct advantage of 4hr time frame over hourly, would be most interested to see it.
 
I use daily charts to get my signals and 8 hour charts to get my entries. The big difference between above-1-hour timeframes and under-1-hour timeframes is that longer timeframes allow you to stay in a trade much longer and ride it almost all the way until it dies out. Of course you need to bear high stops but you also are looking for much bigger gains. I personally dont think there is a mathematical advantage to it, there are great systems that work both ways.

The only clear advantage I see is merely psychological. Operating on a broader timeframe allows you to keep some distance from the market and avoid the stress to sit in front of the computer all day. All you got to do is check the market at different intraday intervals and react to what happened while you were away. I get plenty of time to observe the market and get a clear picture of whats going on, thus my trading is always bright as I am not emotionally involved.
 
Space to breathe

My main objective and pleasure from trading larger frames is the freedom it gives. Using a one hour chart shows me too many signals and I don't feel I can take myself away from the screen for as long as the four hour.

The chart attatched shows the last months trades, I've labellled them simply in hope that the S/R levels will explain the trade enough but I can explain further if required. I don't know whether the 4 hour has distinct advantage over one hour charts but it works for me!

Of course the other advantage is the larger profit from each trade but I don't believe the stops need be any larger.

Twalker, could you post a one hour chart as for comparison as I don;t really use them and would be making all signals using that great benefit of hindsight!!!
 

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chrisw said:
I have traded 4 hour charts on the euro/dollare and cable for the last couple of months now and have found my happiest trading style by doing so. I don't use MA's so couldn't offer any answers there I'm afraid.

I find it so much easier and better (for me) as it gives me alot more free time and I would rather trade 3 times a week and make 100+ per trade, rather than be stuck in front of my computer all day and making numerous trades. It can be annoying as I do need to see the market at any given time 24/5 but these days its not a problem with handhelds like the XDA. I can watch the chart from the pub/golf course and phone through orders as need be. I just love the freedom it gives.

It used to bore me making 15/20 pip trades and then losing the same ten minutes later and wasting all my time in front of a screen. That's not why I started trading. If I do feel like more shorter time frames I occasinally will but not often.

Also I find the time frame alot easier to trade and to see the bigger picture and more important S/R levels.

I'll attach a couple of charts when I get a moment.

Chris
Click to expand...

The problem with trading a 4 h chart is that you ned big stops. At least 50 pips - or maybe 100 pips. So you must also trade small positions. How many pips do you risk?

PS. Are you long or short Cable now?
 
chrisw said:
Of course the other advantage is the larger profit from each trade but I don't believe the stops need be any larger.
Click to expand...

Hi Chris,

Does this mean that you use fixed stops as opposed to stops at significant ta levels, and does it mean you expect to get stopped more frequently.

Thanks for posting the chart, a few questions if I may?
Are you adopting a "nearly always in" strategy in the chart shown?
Do you worry about holding positions overnight?
Do you worry about economic news "spiking" you out of positions?
Do you find it difficult to switch off from the market and how do you resist the temptation to continuously monitor your position ( especially when economic announcements are due)? :devilish: which I think would be one of my main problems with the longer time frames.
 
Livermore said:
The problem with trading a 4 h chart is that you ned big stops. At least 50 pips - or maybe 100 pips. So you must also trade small positions. How many pips do you risk?

PS. Are you long or short Cable now?
Click to expand...
Hi Livermore,

I don't think you need to have stops that size, I use 40/50 pip stops. I find entry just as important as exit and try to make sure I get into a trade whereas it shouldn't move back on me too much.

As for position size I use 2/3% maximium. I don;t see how anyone could attempt to start trading without at least 5k. Even with 5k you can earn a very decent wage at 2% as long as your not greedy and trying to make a million!

I'm out of the market just now.


Samtron said:
Hi Chris,

Does this mean that you use fixed stops as opposed to stops at significant ta levels, and does it mean you expect to get stopped more frequently.

Thanks for posting the chart, a few questions if I may?
Are you adopting a "nearly always in" strategy in the chart shown?
Do you worry about holding positions overnight?
Do you worry about economic news "spiking" you out of positions?
Do you find it difficult to switch off from the market and how do you resist the temptation to continuously monitor your position ( especially when economic announcements are due)? :devilish: which I think would be one of my main problems with the longer time frames.
Click to expand...

I use fixed stops as I know that if it is that far away from my entry I was wrong regardless of what happens next. My entry was wrong and I won't allow myself to go that far negative, better out than risk the chance it may pull back to profit.

I am concerned about being away from the screen, especially at economic releases which is why you would never see me far from my XDA! Economic spikes aren't a concern as they usually are in my favour but I am comfortable with the loss if thats what it causes. What will be, will be. Thats the whole point of money management IMHO.

Hope this helps
 
Hi Chrisw

Do you just use this for trading cable or do you trade other pairs as well?
Do you use limit orders at S&R levels to open a trade or open at market when you see a trade?
How often do you look at the market during the day?
 
I start from smaller time frames and then move on up or should I say I watch 3- 4hr chart mostly 3hrs and see what is happening. Then I go to the lower time frame to find my entry. The bigger time frames hide the noise. It takes a lot of practice though

I trade in the direction of the bigger time frame mainily.
 
dc2000 said:
Hi Chrisw

Do you just use this for trading cable or do you trade other pairs as well?
Do you use limit orders at S&R levels to open a trade or open at market when you see a trade?
How often do you look at the market during the day?
Click to expand...
Cable primarily but also trade UR/USD occasionally. I do trade Indices also but only now an then but that's alltogether diferent.

I only enter and exit trades by my own hand as I like to see whats happening and know when it happens. Also I like to enter my setups myslf as like to be able to trust and justify my trades rather than relying on the brokers.

As for how often, that depends on what I'm doing at the time but I always have my handheld, so normally I check hourly and when economic releases are due.
 
chrisw said:
Cable primarily but also trade UR/USD occasionally. I do trade Indices also but only now an then but that's alltogether diferent.

I only enter and exit trades by my own hand as I like to see whats happening and know when it happens. Also I like to enter my setups myslf as like to be able to trust and justify my trades rather than relying on the brokers.

As for how often, that depends on what I'm doing at the time but I always have my handheld, so normally I check hourly and when economic releases are due.
Click to expand...

Well, I suppose the trend is still down in Cable. Why are you out of the market now?
 
Hi chrisw, just wanted to know are previous week high/ low close imprtant factors when trading 4hrs, if so how do use these?

thanx.
 
I think that you are all mising the point.
4 hr traders see 5 M movements as noise.
Weekly traders see 4 hr movements as noise.
Just make your mind up who you are and what you want to trade.
Everything is noise / trend if it is outside the TF that you are currently looking at.

Someone mentioned that they didnt like to watch the screen for a few points.
Well try slapping a few hundred contracts on a few points and see if that grabs your attention.
And then consider slapping a few hundred contracts on a longer TF with deeper stops and see if your knees tremble.

Just stop posting to T2W for a day or two and THINK the game through and then post your comments.....it will lift all our games.

Speaking of games, did you see what my 2 home teams did to the Irish and the Scotties in Rugby today!
 
commanderco said:
I think that you are all mising the point.
4 hr traders see 5 M movements as noise.
Weekly traders see 4 hr movements as noise.
Just make your mind up who you are and what you want to trade.
Everything is noise / trend if it is outside the TF that you are currently looking at.

Someone mentioned that they didnt like to watch the screen for a few points.
Well try slapping a few hundred contracts on a few points and see if that grabs your attention.
And then consider slapping a few hundred contracts on a longer TF with deeper stops and see if your knees tremble.

Just stop posting to T2W for a day or two and THINK the game through and then post your comments.....it will lift all our games.

Speaking of games, did you see what my 2 home teams did to the Irish and the Scotties in Rugby today!
Click to expand...
Yes and No. Traders using a 4hr chart could usefully consider using weekly and monthly for trend, S&R etc, and use the hourly or lower TFs for positioning trade entry and exit. Noise of sorts, but a pip is a pip is a pip.

No. Didn't see the rugby but I saw what our lads did to your football team. In all fairness, Argentina played a beautiful game and did deserve more goals based on effort and style alone, but didn't keep their focus or concentration into the end of the game. That's where they're often won and lost.
 
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