Forex 8 hour chart strategy

Forex 8 hour chart strategy

9/19/ · 8 Hour Charts MT4 Even though 8 hour charts to not come by default on metatrader 4 they are quick and easy to setup. The 8 hour time frame is my personal favorite as it bridges a gap between the daily and 4 hour time frame that provides to be an excellent filter against normal market chop or price fluctuations. I love trading the 8 hour time frame best Yes, there are MORE trades on a 15 minute chart, however, there are also more false-signals and there is more random market noise, so you are just going to end up taking more losing trades and stressing yourself out more. This all contributes to a poor trading mindset and ultimately to The AUD/JPY 1-Hour Forex swing trading strategy captures bigger market trends successfully on the 1-hour time frame and above with the help of the MACD cross indicator. It’s a trend following swing trading strategy that follows the best market trend at all times

Trading on the 8 Hour Charts | My Forex Trading Blog

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 to be used on the 4h timeframe, which makes it highly suitable for swing traders.

In this strategy, forex 8 hour chart strategy 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.

Forex 8 hour chart strategy 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 forex 8 hour chart strategy 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, forex 8 hour chart strategy. 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, forex 8 hour chart strategy, 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, 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, forex 8 hour chart strategy. 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 count 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. Trades 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. Get Daily Profitable FX Signals For FREE! Our Very Profitable 4 Hour Chart Trend Following Strategy. START TRADING.

Forex Eight Hour Chart Challenge

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Forex Trend Trading The 8 Hour Charts

1/13/ · Unlike stocks which are opened for trading for a limited 8-hour window, in forex trading, the foreign exchange market never sleeps. So, in the stock market, the 4h TF is useless as one full day of trading will be comprised of two 4h candles. However, in the forex market, one full day of trading activity is comprised of six 4h candles The AUD/JPY 1-Hour Forex swing trading strategy captures bigger market trends successfully on the 1-hour time frame and above with the help of the MACD cross indicator. It’s a trend following swing trading strategy that follows the best market trend at all times Why Eight Hour Charts? One of the major benefits is that they save your time. Eight hour charts only need to be checked every hours, making it is easy to trade them around a busy schedule. You may be thinking that the daily charts save even more time, and you would be right. However, daily charts have far fewer trade setups than eight hour charts