The strategy Forex Day-Hour, based on an assessment of 2-time-frames, trade is conducted only on a trend and is mainly used promptness of the day (D1) and 4-hour intervals (H4). Perhaps a combination of both time intervals, such as H4 — H1. But mostly it was designed for D1 — H4. Currency pair can be any (as the major currency pairs and cross rates).
On the day interval (D1) using a simple moving average SMA will determine the direction of the trend in the market, and on a 4-hour interval — will receive trading signals for transaction and exit from the market.
And so, using the following indicators for forex, which are present in the trading terminal MT4 immediately after it is installed on your PC:
- simple moving average SMA (3) with a shift of 3 (it should be set on the day and 4-hour interval).
- Indicator MACD (12,120,5) (set the interval H4) — can be used as an indicator and MACD-combo.
- indicator forex RSI (9) (determined by the interval H4)
Analysis of the situation on the market with the strategy forex «Day-Time»:
The first step — the interval D1 find the closing price the day candles, on the moving average SMA (3). If the closing price of yesterday’s daily candle is above the moving average, then we will be in the range H4 consider only the trading signals for BUY. If the closing price of yesterday’s daily candle is below the moving average SMA (3), then we will be in the range H4 consider only the trading signals on sale. Well, if it is difficult to determine where the candle is closed, for example, the chart appears doji at the intersection of SMA, then the best option would be to miss the trading signal, and waiting will be a distinct signal.
Once we determined what we are ready to conclude a deal on a reduced time scale H4 should consider the following factors:
1) signal from the indicator forex MACD — moving average crossovers.
2) direction indicator RSI — up or down.
3) is present whether the candle closed above or below average.
Sample.
Yesterday the Japanese candle on the daily price chart closed below the MA (moving average), which means that today, according to the rules of the trading system to the 4-hour price chart to take into account the trading signals only on sale.
First trading signal comes from the forex MACD indicator (the main intersection and the signal line). However, the closing price of the last candle on the range H4 is still higher than the MA, so we are waiting until the price goes below the SS. Third confirmation for the conclusion of the transaction will be the direction of the indicator RSI. In this strategy, forex enough that he had been directed toward the conclusion of the transaction.
Stop-loss is set by the local minimum (at closing for the BUY) or maximum (in our case).
Closure of a trading position is in inverse signals Forex indicators. However, this often does not happen is not convenient, because the patched when trading on a time-frame at 4 o’clock in the right time to close the trade position can occur only on the following trading day. Therefore easier to calculate take-profit, taking into account a close support and resistance levels, as well as for the Fibonacci extension.
For example, the transaction was closed by order of take-profit with a profit of 73 points.
