Im a newbie myself but here’s my thoughts on this. If the daily or 4 hour isn’t showing a strong signal then I’d totally ignore whatever the 1 hour is saying. I was looking at all time frames when I first started and was getting totally confused and losing most trades. I now only look at the daily charts, as recommended by johnathan as a newbie I’m not even using the 4 hour at the moment. There are fewer trades this way but they are usually much more profitable and less risky. Since changing my trading this way my results have improved a lot and it’s much less stressful, I’m enjoying trading a lot more now.
I think you would need to be at your screen a lot to place trades based on an hourly chart, and from my experience the hourly very rarely matches the daily chart signals. Any major announcement could effect an hourly chart and give false signals, whereas on the daily things will usually settle down by the close.
I’m sure johnathan will give his thoughts on this but he has said many times on the forum and in the course that he normally sticks to the daily and 4 hour charts.
hey equinox …thank you for the reply…
what you said makes a lot of sense…and you know exactly my predicament…
im gonna take your advice and forget about the hourly and focus on the daily.
This thread isn’t for discussing the 1 Hour time frame. You might want to find one that does or start your own. Sorry to be blunt but we are trying to come to grips with using the daily charts here.
hey russ …sorry if my question offended you.
i just got conflicting information after reading the whole thread.
i too am learning price action trading from johnathon…and apparently he said its ok to ask questions if you get stuck…and i was stuck.
edt…
just had a quick run through about 20 - 30 pages…and it is clear that everything that johnathon posts is either 4 hour or daily chart…my mix up was that others were posting 1 hour charts in the thread…and i assumed it was ok…
im really keen on johnathon system…
it really makes sense, and it is what it says on the box…pure price action.
at the end of the day…no hard feelings russ…i did actually learn something critical from my questioning…something critical about johnathons way of trading.
again my sincere apologies…but i spent nearly 30 hours reading the thread non stop.
and it was clear about support and resistance…i even know what a beeb is now and a bueb…it was clear that johnathon uses daily and 4 hour charts …but i also thought he used 1 hour charts…but when i looked back …it is other members that posted the one hour charts…and johnathon only commented on them…not in a negative way
so maybe i just took on too much information all in one go…there were 170 pages to read and digest…plus all the branching off to johnathons site…it was a real marathon…i did it all in one sweep with just an hour sleep here and there…as i am so keen on this system.
so now you know where i stand…i am no expert…and i tried to get up to speed with the thread as quickly as possible so that i can get to the depths of price action theory…
hey johnathon.when i read the thread i noticed some talk of blending candles…
ok i know what this means…and i can do it manually.
my question is…
most charting software doesnt have this facility…i saw how i can get it on my MT4 by the way.
but do you think its important…as other traders are reacting on price action that they see on the time frames of their charting software…
do you think that blending candles will possibly give us the wrong perspective of what is really happening, or a better perspective ?
last question…to hopefully get up to speed.
when i put support and resistance lines on the daily time frame and i look at the h4 time frame.
sometimes i am tempted to move the lines i put on the daily time frame to suit the h4 time frame…thinking these lines are now going to be more accurate…
is that a good thing or a bad thing.
so the question is should i leave my support and resistance lines as they were…or should i make them more accurate…
sorry if it was in the thread…i remember reading something about this…but i cant find it.
Firstly, i trade the H1 at times ( e.g when the H4 is shaping up to form, say a pinbar, and on H1 a valid pinbar has already formed ). My # of trades on H1 are rare though, most of my trades are on H4 (highest) and D1 (2nd highest). Also, the taken trades were off S/R zones earlier marked on D1/H4.
Secondly, as Johnathon teaches, you should stick to the timeframe in which you’ve seen the setup; that is, if you see a tradeable setup on H1, manage it entirely in the H1, and don’t bother with H4 or D1. Same goes for the higher timeframes ( e.g, if you see a setup on D1, don’t go looking at what is happening on H4/H1, manage it entirely on D1 )
yes…i didnt want to mention names…but as i read the thread you dudest, seem to grasp what johnathon was teaching really well, and you also posted some 1 hour time frame stuff…thats part of where my confusion started.
anyway …thanks for your explanation on how your trade…i am most interested…
hey you can increase the post count per page in your settings in user cp. for me this thread is now on page 87
also it was taught earlier that drawing lines on a higher tf then dropping to lower time frames is ok, but drawing lines on a lower time frame and jumping up to higher is not. it is ok to leave the lines where they are should you decide to drop down tf’s, i think it is actually recommended
So here is a trade analysis on the 4hr EUR/USD. Please let me know your comments.
The long term trend of EUR.USD is DOWN, therefor we must only “short” this pair
There is a long wick candle that has closed at (or just under) the supply level
This closing position is a pull back of the longer term
The Pin bar has a long wick (approx 34 pips)
The Pin bar closes within the bottom 1/3 of the candle.
Dislike about the trade - This is the second time it’s come back to test this level… Supply may be running out.
Summary - I would rate this as a A+ trade. It would be rated higher if it was the first time returning to this level. I would look for a 1st TP point at 1.26170 and a final tp just above 1.2500
the lows seem to be getting higher and also the highs…so i would seriously consider going long with this pair…looks like its starting to trend upwards…good luck.
please just relax. It is no big deal. This didn’t need to be turned into 3 pages. Truth is nearl everyone who has posted has asked a question that I have already answered but I don’t mind. People need to learn and if by asking questions helps then I am fine to answer them over and over again.
Okay so answer for this question: If you are not first profitable trading the daily/weekly you should not be trading anythign smaller. Once you have become profitable on the daily charts then you can move down to the 4hr. Once you have mastered the 4hr you may wish to move smaller charts.
I have traded PA for a long time and I can tell you the best results are found on the 4hr and above. There is zero doubt about this!
The reason for this is all about the time goes into making the setups. So take the inside bar. If we see an inside bar on the 1 hr chart it means that price could not break higher or lower for a total of 1hr. If we get that inside bar on the daily chart it means that price could not go higher or lower for 24 hours and this was through all sessions (UK/US/Asia etc). So obviously it means a heck of a lot more if that inside bar could not go higher or lower for 24 hours and through all sessions compared to only 1hr.
in most case we play only h4 and daily.
