Hi. I have found that trading the H4 instead of lower time frames such as M5 is better in that it is more stable, the indicators are more accurate etc. The problem is that if you have a number of critical news events in one day, you are effectively prevented from trading as you can be stopped out easily. I find that trading during the London open is the best and after about 11:30 GMT+2, the market slows down. So when is then a better time to trade the H4? Does anyone trade the H4 during silent times?
By Arend
It’s good to see that you are accepting that a volatile day may not be the best for you to trade, you have identified the best times for you to trade, and I think you have the answer regardless of what chart you use.
That is the reason why is stick to the daily time frames - there is less volatility and the charts are easier to read.
Thank you, do you trade any other time frames at all?
Arend
That’s because the higher time frames hold more strength.
Seems like you have answered your own question here, thing is mostly newer traders starting out wants to gain pips quicker and scale down to lower time frames, I have done this plenty of times.
I have since learnt the higher the better.
I solely trade on the Daily time frames and only if my strategy tells me I can enter a trade, I also trade 4Hr and if things are slow I would go down to 1HR but also keeping in mind to check the higher time frames for clarity
Seems like you are doing good so far by yourself though
Hi arendvsc, The best time to trade H4 is every Forex trading day in my opinion and if you get to grips with only trading the most profitable pairs available on any one day instead of just trading any pair that you like the look of, you will find that ‘silent times’ can be very few and far between.
When to trade any time frame depends on your trading strategy. In the end I do not think one is better than the other, but what it boils down to is what works best for you. In my opinion a lot of newbies make the mistake of jumping around between time frames.
H4 is great for medium term trend identification.
However it would be much easier to pick entries from lower TFs that agree with H4 trends. Otherwise your exposure may be too high should a H4 setup fail.
I personally specifically trade on daily TFs if find it less nerve wrecking and you can see clearer view of where market is heading. I then if I have to go down to 4H TFs for entry points and SL. I mentioned if I have to let’s say I’m entering in the middle of a downtrend and I’m already close to support and resistance is way above and on daily chart it’s the start of the candlestick that I’ve just entered in that case I go down to 4H TF and place my SL according to my risk reward ratio. Instead of placing my SL above resistance which is way higher than I can afford to loose.
I’ve tried trading off of 4H charts solely but daily charts were far better. I’m relatively new trader myself. Why don’t you experiment with higher TFs even during news releases I find as long as you read the price action correctly and have your key support and resistance lines drawn on. It’s usually pretty accurate on daily charts. But with 4H TF and lower it’s hard to predict with news releases. Well I’m not a fundamental trader so that’s really all I can say. Hope that helps!
I don’t think that there is specific time of the day which is the best for trading on H4. It all depends of your trading strategy.