Hello, and welcome.. to Jurassic Park :D but in all seriousness this is my 4 hour price action strategy, i make a very comfortable living off of it so please check it out and feel free to comment on it or ask questions so we can all continue to learn and become better traders :)
The first link I included is a quick template of the actual strategy, and the second file is an in depth explanation worth reading
Now, here are some picture explanations and examples of trades made:
Looking at this chart we can see an obvious Pin Bar forming on the 4 hour chart, noticing that it is also above the center line of the Bollinger Band we can see it is in a prime selling zone and therefore a pretty good probability trade, but wait! there is still one more filter we have to use, the 1 hour chart.
These four 1 hour candles are all the candles that are contained within that one 4 hour pin bar, by looking at these 4 candles we can see how the price was moving within that pin bar, the reason we use the hour as a filter is to see if the price is truly heading in the direction we want it, or if this is just a temporary pause in the trend. Notice how all 4 candles completely reject the top bollinger band, the buyers tried and failed four times to bring the price up, also notice how they broke through the EMA's, that is a great confirmation.
and look! the price moved after the pin bar
*in case the files aren't working*
Official Forex Strategy
Currency Pair: GBP/JPY, AUD/JPY, EUR/JPY, GBP/NZD, EUR/NZD
(Any pair that has high volatility and daily pip ranges)
Explanation: When you choose which charts you are going to trade there are a number of things you must look for when considering a chart
1 High Volatility: the more volatile the market the more entry and exit points there will be as price reaches its extremes much faster, another great thing about high volatility is that the market will normally be trending, and when it isn't the ranges are big enough to trade off of profitably.
1 Confluence: look for charts that trade with confluence to one another to maximize how many entry signals appear a week
1 Number of Charts: make sure you only keep a manageable amount of charts, otherwise every time you go to your computer to look for signals you'll be trapped their sifting through dozens of high risk/low reward charts for no reason, just like a trading method, you want to get to know each and every chart before you even consider moving on to another one (I myself only trade 5 charts), this will allow you to get a feel for the way that market moves, how wide your stops can be, and how far each price move will go on average
Time Frame: 4 Hour
Explanation: Because this method of trading uses the pure Price to determine signals, it can be used on any time frame, that being said you should pick a time frame that suits how often you want to trade, I myself enjoy being able to only have to be at my computer every 4 hours and by using the 4 hour charts I never miss a single candle. Some considerations before picking your time frame are:
1 Profit Goals: obviously you wont make 80 pips a trade on the 5 minute charts, the lower the time frame the smaller the moves, and the smaller the take profits will have to be,
1 Quantity vs. Quality: The smaller the time frame the more trades you will have to make to achieve a certain amount of pips gained, this causes increases in spread and swap costs, that being said however there is much more money to be gained by trading smaller time frames (if you trade 24/7), every candle on the 4 hour chart has a few or more 15 minute chart moves on it that all could have been profited from where as on the higher time frame it is translated to a slow price move.
1 Amount of time spent on Forex: Although the lower time frames contain more money to be made you must realize the unrealizable of being at your computer every 1, 5, 15 minutes, or even every hour of every day, whereas if you trade the 4 hour or daily charts you will never miss a candle (provided you dont mind waking up once at a godforsaken hour in the middle of the night to check the market for five minutes)
The lowest I would ever go from using 4 hour charts with 1 hour charts as confirmation, would be using 1 hour charts with 15 minutes as confirmation.
Indicators: Bollinger Bands, EMA (5), EMA (10), 1 Hour Chart
Explanation: I have tried literally EVERY SINGLE indicator (extensively might I add..) on MT4 as well as numerous custom indicators, IN MY OPINION indicators are dumb :P all indicators are lagging indicators by nature, meaning they can only tell you what has already happened, where as by using just price action you can see where the price will go before it goes there, that being said I use these indicators for the following reasons:
1 Bollinger Bands: This is used to determine price extremes and buying and selling zones, you don’t want to be trading an evening star at the bottom of a move now do you? This helps filter the direction you want to be trading in an obvious and simple way
1 EMA's: I use these as dynamic supports, if you plot them on your charts you will see that price often bounces off of the EMA's, and this is a very useful piece of information to use, to be able to see the buyers and sellers fighting back and forth with clarity
1 1 Hour Chart: Being able to see inside every candle within the 4 hour candle you are about to enter into a trade because of is an amazing filter, to see the price moving, see why the 4 hour candle has formed in the way it has, is extremely awesome
Entry: Place buy order on pin bar (or reverse pin bar) or morning star that forms on the 4 hour chart (on or below the center line of the Bollinger Bands) and is confirmed by price movement on the 1 hour
Entry: Place sell order on pin bar (or reverse pin bar) or evening star that forms on the 4 hour chart (on or above the center line of the Bollinger Bands) and is confirmed by price movement on the 1 hour
EXIT: take half profit at 50 pips, and let the rest run till next opposing signal
STOP: place stop 40 pips away, at first take profit move stop to breakeven, trail stop manually by 50 pips after that
Explanation: These are just some hard numbers to use, it should be different for every chart as every chart moves differently, but these are some good safe guidelines to go by for entering and exiting.