4 Hour charts

[Glenborrell]

Hi,

I just wanted to ask people's opinion on which 4 hour charts are the best ones to use (or that you are using and why).

I currently use IG index and their 4 hr charts close at midnight, 4am, 8am, midday, 4pm, 8pm.

However i've noted that other providers (ETX & finspreads) have 4 hour charts that close at 1am, 5am, 9am, 1pm, 5pm, 9pm.

Just after some advice on the best ones. Ideally i want to watch the 4 hour charts that most people / professional traders watch so i'm watching the same timeframe data that they are.

Thanks in advance,

Glen

 

[virtuos0]

The market is not moved by candlestick formations, hence it makes no difference.

 

[maiden22]

The market is not moved by candlestick formations, hence it makes no difference.

Obviously - the market is moved by people buying and selling stuff.

But if your methods involves using candles for entry triggers, for example, then presumably it makes a difference to you.

My (admittedly quite limited) experience of candles / formations has led me to believe that they can be quite useful as an entry trigger and for stop placement, as long as they occur at certain areas and are used with caution and discretion.

For example, a candle such as a hammer at a pivot zone on a big round number. The level is significant as there may be significant order flow there. Previous resistance becomes support over and over again as it's an area where buying pressure overwhelmed selling pressure. The candle demonstrates that price tested the area and rapidly and strongly rejected it.

Just my opinion, as I say I have limited experience so I may well be wrong.

 

[Glenborrell]

Obviously - the market is moved by people buying and selling stuff.

But if your methods involves using candles for entry triggers, for example, then presumably it makes a difference to you.

My (admittedly quite limited) experience of candles / formations has led me to believe that they can be quite useful as an entry trigger and for stop placement, as long as they occur at certain areas and are used with caution and discretion.

For example, a candle such as a hammer at a pivot zone on a big round number. The level is significant as there may be significant order flow there. Previous resistance becomes support over and over again as it's an area where buying pressure overwhelmed selling pressure. The candle demonstrates that price tested the area and rapidly and strongly rejected it.

Just my opinion, as I say I have limited experience so I may well be wrong.

Maiden,

Thanks for the above. I'm well aware of what you have said. i trade off PA setups but want to be watching the same 4hr periods as most people. Hence my question.

Thanks,

Glen

 

[Glenborrell]

The market is not moved by candlestick formations, hence it makes no difference.

It does if i trade off a 4hr candle (or any time frame for that matter).

I want to be watching the same 4hr timeframe as most people.

 

[Black Swan]

Hi,

I just wanted to ask people's opinion on which 4 hour charts are the best ones to use (or that you are using and why).

I currently use IG index and their 4 hr charts close at midnight, 4am, 8am, midday, 4pm, 8pm.

However i've noted that other providers (ETX & finspreads) have 4 hour charts that close at 1am, 5am, 9am, 1pm, 5pm, 9pm.

Just after some advice on the best ones. Ideally i want to watch the 4 hour charts that most/professional traders watch so i'm watching the same timeframe data that they are.

Thanks in advance,

Glen

why not use 3hr, or 2hr, or 1 hr...or a combo of all three, that negates your dilemma...

 

[meanreversion]

Whether or not you're using the same 4hr spec as other people is of little importance. Those people may arrive at a different opinion from you and sell when you're buying, for example. You're overcomplicating things..

 

[maiden22]

Sorry Glen, I posted all that and forgot to answer the question!

My answer is, I don't know, but I'd be interested in opinions also. I suspect the best thing to do is not worry too much and trade what you see. However, I don't see anything wrong with watching two feeds as well. To me, the areas are the really important thing, the candles are just a trigger, or a confirmation of the price behaviour.

I didn't realise that some brokers use different times (I use IG only at the moment) so thanks for bringing the subject up. I'm going to start keeping an eye on two feeds (already got a tiny ETX account) and see how it goes.

 

[Paul71]

Hi,

I just wanted to ask people's opinion on which 4 hour charts are the best ones to use (or that you are using and why).

I currently use IG index and their 4 hr charts close at midnight, 4am, 8am, midday, 4pm, 8pm.

However i've noted that other providers (ETX & finspreads) have 4 hour charts that close at 1am, 5am, 9am, 1pm, 5pm, 9pm.

Just after some advice on the best ones. Ideally i want to watch the 4 hour charts that most/professional traders watch so i'm watching the same timeframe data that they are.

Thanks in advance,

Glen

IGs betting prices are only indicative market prices, what 'pros' will be interested in a betting price?

 

[virtuos0]

It does if i trade off a 4hr candle (or any time frame for that matter).

I want to be watching the same 4hr timeframe as most people.

In order for the difference between one 4hr chart and another 4hr chart to matter to you, it would have to be the case that the difference between the two has the capability of affecting the market.

The difference between the two is that the candlestick formations will appear different. As no professional are trading candlestick formations, the distinction between the two charts is irrelevant.

 

[virtuos0]

Obviously - the market is moved by people buying and selling stuff.

But if your methods involves using candles for entry triggers, for example, then presumably it makes a difference to you.

My (admittedly quite limited) experience of candles / formations has led me to believe that they can be quite useful as an entry trigger and for stop placement, as long as they occur at certain areas and are used with caution and discretion.

For example, a candle such as a hammer at a pivot zone on a big round number. The level is significant as there may be significant order flow there. Previous resistance becomes support over and over again as it's an area where buying pressure overwhelmed selling pressure. The candle demonstrates that price tested the area and rapidly and strongly rejected it.

Just my opinion, as I say I have limited experience so I may well be wrong.

You're on the wrong track.

 

[Glenborrell]

why not use 3hr, or 2hr, or 1 hr...or a combo of all three, that negates your dilemma...

Thanks Black Swan,

I work so i find it easier at the moment to just follow the 4 hour chart. Trying to check cahrts more often is only gona help me get my P45 quicker

The Ig times actually suit me well but just want to find out what other people traded/ prefered.

There are actually more setups (for example pin bars) on the ig charts than on the etx charts funnily enough.

Thanks again.

Glen

 

[meanreversion]

As a suggestion, if you trade off signals generated every 4 hours, select the times which suit you the best. 4am, 8am, midday etc might work well for you, but occasionally these will intersect with events, e.g. MPC comes out at midday. In the long run, it won't make much difference, whichever starting point you choose.

 

[meanreversion]

Another way of thinking about it is this - no strategy is universally superior to any other. So, if you choose 1hr, 2hr, 3hr or 4hr bars, sometimes you're better off doing one, sometimes it's better doing the other. In other words, the selection of timeframe and starting point will not make or break the strategy. Focus more on something which makes sense to you, and pay attention to money management as well.

 

[Black Swan]

Thanks Black Swan,

I work so i find it easier at the moment to just follow the 4 hour chart. Trying to check cahrts more often is only gona help me get my P45 quicker

The Ig times actually suit me well but just want to find out what other people traded/ prefered.

There are actually more setups (for example pin bars) on the ig charts than on the etx charts funnily enough.

Thanks again.

Glen

Whilst on the train last night I was re-reading an e-book "Street Smarts" on my netbook, just remembered a quote which I'll dig out and put on this thread for you, it kinda covers what V2O is saying. In essence our 'job' is to find an edge that exploits the gaps in what the big boys are doing...if that makes sense..I'll dig it out this evening.
I know where you're coming from and in my experience, if you drop down a tf you'll still see the swing, there's other problems associated with that but...

 

[maiden22]

You're on the wrong track.

Thanks for the reply.

Would you mind elaborating a little? I've had quite a bit of success following this basic approach, but it has only been over a few months (so I don't think it means a great deal by any means) and I'd be grateful to hear your opinion.

 

[virtuos0]

There are actually more setups (for example pin bars) on the ig charts than on the etx charts funnily enough.

That fact illustrates my point beautifully. Instead of trading a shifting and false representation of something, why not trade the underlying reality?

 

[HawkTrader]

That fact illustrates my point beautifully. Instead of trading a shifting and false representation of something, why not trade the underlying reality?

Exactly. A bullish pin bar on the 4H chart will just be a few bearish candles, and then a few quick bullish thrusts up and a close near the the top of the bearish candles on the hourly. On the minute chart you might see loads of higher high's. It's still the same setup, but the candle doesn't look the same.

Trade the price and levels IMO, not the candles.

 

[virtuos0]

Thanks for the reply.

Would you mind elaborating a little? I've had quite a bit of success following this basic approach, but it has only been over a few months (so I don't think it means a great deal by any means) and I'd be grateful to hear your opinion.

You are wise to realise that a few months success means very little. It's quite possible to sustain a positive account balance for years based on nothing more than luck, but in the long run you will revert to the mean unless you have a decisive advantage.

The market that you are trading does not recognise the false divisions provided by candles. Price moves as a continuous sequence, so why would you then think that you could extract any information to form a trade based on a false representation?

If you want to paint a landscape, you don't pull out an OS map and make a guess, you go to the place and see it in all its glory.

 

[virtuos0]

Exactly. A bullish pin bar on the 4H chart will just be a few bearish candles, and then a few quick bullish thrusts up and a close near the the top of the bearish candles on the hourly. On the minute chart you might see loads of higher high's. It's still the same setup, but the candle doesn't look the same.

Trade the price and levels IMO, not the candles.

Yup.