Indicators used and their purpose EMA applied to closing prices on the H4 charts: This forms the main basis of our bias. The chart below shows the set up for this strategy. Once the chart is set up, we look for the following criteria: Sell Bias: 50 EMA must have recently crossed over below the EMA Buy Bias : 50 EMA must have recently crossed over above the EMA If either of the conditions is met, we then wait for the following set up to appear: Sell Criteria Price must be trading at or below the 50 EMA Price must make a low and then retrace back to make a high, contained within the and 50 EMA Using the horizontal line tool, mark the low point before retracement Once price breaks this low, wait until a new low is made and price starts to retrace again Place a sell order at the previous low with stops above the low at the most visible intermediary high Measure the distance of the high to the low and project the distance 1.

Price makes a new low at 0. So BE target would be Low or entry — distance 0. We now calculate the final target which is 0. Projecting this from the possible entry of 0. We now place a sell order at the previous low of 0. In the above chart, price makes a high at 1. Stops are placed at the previous low as it is the only visible stop level that we can see. From entry, the projected target is 1. Impulsive traders will find such scenarios very tempting to jump into the trade, ignoring the rules.

Share Facebook Twitter ReddIt WhatsApp Pinterest Telegram Linkedin Facebook Messenger Email Print. The 50 MA is there for guidance purposes only. What we look after is for the price to break above the 50 MA either within the first candles after we entered the market or during the development of the Doji Sandwich pattern.

First, the protective stop-loss trading strategy is placed below the Doji candle, which is the middle candle of the 3-bar pattern used. More, once we break and close above the 50 moving average, the stop loss than can be trailed below the 50 MA to further reduce the risk. If the third candle closes above the high of the first candle then this is setting the stage for a very high probability trade. In summary, the H4 forex trading strategy is ideal for looking for trading opportunities around the clock.

Keep in mind that the H4 trading strategy requires a solid understanding of how the market operates. The trading rules outlined throughout this guide should be enough to help you navigate all types of trading environments.

We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

Recently I have discoverd 3 candle pattern. And thanks for your topic, I found it more details about entry technique. Very good!

This step-by-step guide will show you an easy way to trade with the MACD indicator. Get the free guide by entering your email now! Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. H4 Forex Trading Strategy Using the Doji Sandwich by TradingStrategyGuides Last updated Apr 30, Advanced Training , All Strategies , Chart Pattern Strategies , Forex Strategies , Indicators 4 comments.

Our goal is to focus on the 4-hour time frame namely because: It allows you to actively trade the markets around the clock It combines the benefit of the intraday charts along with the big picture trends Probably the 4 hour chart is the best time frame for simple swing trading.

See below: Table of Contents hide. Grace says:. May 31, at pm. Fayokemi says:. January 22, at pm. Noriko says:. December 30, at pm. kamran says:. The key to making 4 hour chart breakout trades is to find a major area of support or resistance that price has respected on multiple occasions. For example, see the chart below. Price had been respecting the obvious support level on multiple occasions. When price is looking to make a breakout lower and through this support level we could have a sell stop order ready to activate so we are entered into the trade automatically as price breaks lower.

There are many different strategies you can use to make high probability and profitable trades on the 4 hour charts. The 4 hour charts are the perfect chart for both new and advanced trades. They allow for swing trading and also breakout and momentum trading. Make sure that whatever new strategy you are looking to test for the first time you do it on free demo charts risking no real money.

You should never risk real money in a live trading account until you know that the strategy or system you are using works and can consistently make you profits.

I hunt pips each day in the charts with price action technical analysis and indicators. My goal is to get as many pips as possible and help you understand how to use indicators and price action together successfully in your own trading.

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by TradingStrategyGuides Last updated Apr 30, Advanced Training , All Strategies , Chart Pattern Strategies , Forex Strategies , Indicators 4 comments. Learn the H4 forex trading strategy a cash-rich system to benefit from both the intraday price fluctuations and the larger time frames. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box.

What time frame you trade on will largely determine how you calculate your support and resistance levels, your risk level and determine the trend direction. Our goal is to focus on the 4-hour time frame namely because:. Probably the 4 hour chart is the best time frame for simple swing trading. If you have a 9 to 5 job, or a family that keeps you busy, but you still want to make money from the forex market, we recommend trying the H4 trading strategy. Now, probably most of you already know that in the forex trading and technical analysis realm, H4 is simply an abbreviation for the 4-hour daily time-frame.

The 4-hour time frame is an intraday TF where each corresponding candle encompasses exactly 4 hours of trading activity from open to close.

The 4h time frame carries a distinctive role, especially in the forex market. 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. What is even more important, one 4h candle point out to a half of each major trading sessions.

In the forex market, the Sydney, Tokyo, London and New York session have their unique price action. And, this is where FX traders can focus on new trading opportunities. Trading on the 4h time frame is not only suited for those with limited time on their hands or the beginner traders. Check out our guide on the best trading strategy for beginners.

Since time in the forex market is broken in several trading sessions and forex brokers run on different time zones, the 4h candle will close at a different time of the day. The main disadvantage of the different FX broker server times is that you will get different 4h candle closing. Every new candle on the 4h time frame is formed every 4 hours. This in turn will lead to different price actions on your 4h chart.

See below the difference between a 4h chart with a New York close and a chart with a different closing time. To resolve this issue, and have a more accurate representation of each trading session we use the New York close time to define when a new 4h candle is printed. In forex trading, the New York close is considered the standard closing time for the day. Learn how to master forex trading with our complete guide.

The daily closing price in any market, be it forex, stocks, commodities or cryptocurrencies displays who won the battle between buyers and sellers for that session. Traders who are planning to use the h4 forex trading strategy need to have the correct New York closing charts. If you want the identical price action on your charts as we have them, you should use the New York close charts. If you use the correct New York close charts, you should see each 4-hour candle close at PM, PM, AM, AM, AM and PM.

Taking care of this type of detail while it might seem unimportant it can make the difference between winning and losing. The H4 trading strategy revolves around a very common chart pattern known to the technicians as the Doji candlestick.

A detailed guide to the Doji Candlestick pattern can be found here: Best Doji Trading Strategy - The Lucky Star for Profitability. The main characteristic of the Doji is the small body where the open and the close are very close together.

However, the hanging man, shooting star, bullish and bearish Harami, inverted hammer and dark cloud are considered to be variations of the standard Doji pattern.

And, this is what makes the H4 forex trading strategy very effective. This will produce a high probability reversal setup. The truth about trading is that no matter what trading setup you use, there will always be false signals.

See the best practices on how to use the stochastic indicator here: Best Stochastic Trading Strategy - Easy 6 Step Strategy. Spotting a chart pattern is only half of the equation; we also need an entry technique for our H4 trading strategy.

Every major money manager in the world uses those moving averages to make informed decisions about their portfolios. Here is how we use the moving average :. The MA is only used for long-term guidance and to decide how long are we going to stay in the trade. However, if the pattern develops above the MA, we want to stay with the trend and ride that wave to squeeze as much profit as possible. The 50 MA is there for guidance purposes only.

What we look after is for the price to break above the 50 MA either within the first candles after we entered the market or during the development of the Doji Sandwich pattern. First, the protective stop-loss trading strategy is placed below the Doji candle, which is the middle candle of the 3-bar pattern used.

More, once we break and close above the 50 moving average, the stop loss than can be trailed below the 50 MA to further reduce the risk. If the third candle closes above the high of the first candle then this is setting the stage for a very high probability trade. In summary, the H4 forex trading strategy is ideal for looking for trading opportunities around the clock.

Keep in mind that the H4 trading strategy requires a solid understanding of how the market operates. The trading rules outlined throughout this guide should be enough to help you navigate all types of trading environments.

We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Recently I have discoverd 3 candle pattern. And thanks for your topic, I found it more details about entry technique. Very good! This step-by-step guide will show you an easy way to trade with the MACD indicator.

Get the free guide by entering your email now! Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. H4 Forex Trading Strategy Using the Doji Sandwich by TradingStrategyGuides Last updated Apr 30, Advanced Training , All Strategies , Chart Pattern Strategies , Forex Strategies , Indicators 4 comments.

Our goal is to focus on the 4-hour time frame namely because: It allows you to actively trade the markets around the clock It combines the benefit of the intraday charts along with the big picture trends Probably the 4 hour chart is the best time frame for simple swing trading.

See below: Table of Contents hide. Grace says:. May 31, at pm. Fayokemi says:. January 22, at pm. Noriko says:. December 30, at pm. kamran says:. June 7, at am. Search Our Site Search for:. Categories Advanced Training All Strategies Chart Pattern Strategies 55 Cryptocurrency Strategies 47 Forex Basics 43 Forex Strategies Indicator Strategies 69 Indicators 44 Most Popular 20 Options Trading Strategies 30 Price Action Strategies 36 Stock Trading Strategies 62 Trading Programming 5 Trading Psychology 10 Trading Survival Skills Recent Posts Risk of Ruin - Trading Long Term - Know Your Probability 4 Simple Step Event Contract Trading Strategy Using Kalshi Basic Order Types in Trading: Market Order, Limit Order, Stop Order Top Beginners NFT Trading Strategy - Easy To Follow Strategy A Simple Day Trading Forex Strategy - Moving Average Day Trader A Profitable Shiba Inu Trading Strategy Meme Stock Bounce Strategy - Low Risk Meme Stock Strategy A Step-By-Step Strategy Guide For Contrarian Traders The Complete Guide to Fibonacci Trading Signs Of A True And False Range Breakout EFC Indicator: MT4 Indicator Reversal Trading Tool Fibonacci Trend Line Strategy - Simple Fibonacci Trading Strategy Best Gaming Cryptocurrencies to Invest In Crypto Trade Journal Software Review : Coin Market Manager Best Buy and Hold Trading Strategy.

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So BE target would be Low or entry — distance 0. I hunt pips each day in the charts with price action technical analysis and indicators. You can look for reversals within the trend , against the trend or like in the example below when a clear range has formed. Whilst these levels continue to hold we can look to trade long reversal trades from the support and short reversal trades from the resistance. Make sure that whatever new strategy you are looking to test for the first time you do it on free demo charts risking no real money. Home Markets Instruments Stocks Commodities Indices Elliott Wave Dow Jones Analysis Technical analysis Fundamental analysis Economic calendar Authors Daniel Grady Ashraf Laidi Roman Onegin Jing Ren Forex Educational Hub Most Popular Videos Orbex Today English English العربية Español Deutsch Polski.

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