What do you do when the 1hr day trade strategy conflicts with the 4hr swing trade strategy?
E.g.
I entered a short trade with GBP/NZD when is signaled the 1hr chart.
The very next hour is triggered the 4hr chart long. It was strong trigger (RSI at 52 and it as the first signal after the EMA cross up).
I decided to reverse my position and sacrifice just a couple pips to jump on the 4hr trend. I feel it has the potential to yield a high profit over time.
Hi Lama,
They donât really conflict. I view the different TFs as the russian dollsâŚone inside the other inside the otherâŚetc. If you were in Europe or anywhere else where hedging is allowed you would be able to enter both trades and profit from them both albeit at different times. But I am assuming you are in the US like me and we canât short and buy the same pair at the same time. So there are two workaround solutions:
a. I always check higher time frames and wait out if I see a set up developing on a higher TF and forgo set ups on smaller TFs even if they are ripe for the picking. [B]StPhil[/B] strategy seems to work best on 4HTF and 1WTF for meâŚand I am a very patient woman:5: this solution suits me best.
b. Have another account with another broker and use the second account for hedging purposes only. This way you can trade both TFs and profit from both set ups. I have been toying with this idea for a while now but I havenât had the strong urge to get into hedging strategies yet.
Hope this helps.
I know we already covered this but it has slipped my mind.
What is the exit strategy for the 1hr strategy?
Is it once the Stoch B goes back to over bought (long trade)
Or do we wait until the candle closes below the EMA (again long trade)
I am not sure I am following you here. Arenât they in conflict because one trade says go up and the other says keep going down???
I am putting priority on the 4hr trade.
Thanks for the response though.
I am quoting [B]StPhil[/B] : âExit: The first candle close in the Overbought territory of Stochastic B. Just take the pips and run.â
Technically true. You are right TFs do give opposite signals. That never deters me because they are all fluctuations within a higher TF trend, of a higher TFâŚetc⌠at the end it is all one market we just slice it and dice it into different angles. Thatâs what I mean by not conflicting. I didnât mean to confuse you.
Did anyone else jump in on GBP/NZD long yesterday? It signaled but keeps on going downâŚany thoughts on exiting? Itâs already down 200+ pips.
Iâm in the long.
Sadly its went reserve trend.
Hope it will break even back.
Let me try to add to the conversation here. The effort price takes on the 1 HR to have the EMAs cross, is equivalent to the effort it requires the stochastic of the 4 HR to move from one extreme to the other.
This means that the EMA cross on the 1 hr (if contradictory) is more likely to fail, than it is to continue as planned. The only exception is on price reversals.
I should have specified.
I am using the day trader set up for the 1 hour chart. (only 1 EMA and 2 different Stochâs) So EMAâs donât cross on the 1 hour chart, cause there is only 1 EMA. But either way I think I got your point. 4 hour charts are stronger, there is just more information.
Thanks
The more important question is how long do I stick with this GBP/NZD trade Long. It signaled yesterday at 10am PST and kept on droppingâŚjust watching the dollars tick awayâŚ
W.W.P.D ⌠WHAT WOULD PHILIP DO ??? Help me out here man. 
Well Philip is in the trade btw :). I wait for the signal to reverse.
Ok, I am going to ride this ship all the wayâŚ(hopefully not into a glacier)
I mean, everything is saying stay long the day chart even week chart is trending up.
I will prob jump out if the fast EMA crosses below the slow one or if the price breaks the support around the 2.339 mark.
Looks like GBP/NZD is taking a positive turn now.
Philip - What are your thoughts when the approaching the time frames high? For example, GBP/NZDâs 180 day high on the 4 hour chart is right at the 100% of the Fibonacci extension (2.40256). Do you think of it as a strong resistance and get out at that point? Donât care and ignore it?
I know if it breaks through that is a really strong sign itâs gonna continue up.
Thanks in advanceâŚ
Yeah its definitely a strong level. I just read somewhere it is the 4th resistance of the pairâs yearly pivot. Just remember we now trail our profits by a 100 pips. So 100 pips break even, 101 then 1 pip profit and so on.
So on the GBP/NZD trade it touched +100 pips to my break even then dropped and closed right at my break even. I am still in the trade but down around 40 pips.
Regarding your trailing stops are you using the point from when it closes the candle on a 4hr TF (-100) or once it touches +100 you set the stop loss. So in the example above it would have stopped me out because it touched +100 then went back down 100 pips.
I hope this makes senseâŚbasically I am asking you if you are still in the trade?
Yes it would. Its strange though, it didnât reach a 100 pips on the trade Iâm in and Iâm now up 30 pips. I donât know how we could have a different trade.
Did this downward spike stop you out? It is coming close on my end.
Why would it?
Finally got stopped out with that trade. On to the next. Although Iâm not seeing any opportunities in the near future. Anyone have tracking pairs on the 4hr TF??