"Day-Hour" strategy

Suggested timelines H4

The medium-term outlook is the focus of this trading technique. It is advised to wait for distinct signals from every indicator on both periods before entering the market. It is best to take a profit between 80 and 90 points. It is possible to set a stop-loss at the 50-point mark.

For the same currency, open two charts. Timeframes H4 and D1 should be displayed on the first and second charts, respectively. We will use the following indicators for this trading strategy:

1) A moving average whose shift is 3. Both the daily and four-hour charts have this indicator set.

2) MACD with 12, 120, and 5 parameters.The chart H4 has this indicator set.

3) RSI using the 30 and 70 level settings. The chart H4 has this indicator set.

Now, take a look at the D1 period chart. We anticipate a drop in the exchange rate on chart H4 if the closing price of the preceding daily candlestick is below the moving average. The exchange rate on chart H4 is probably going to increase if the closing price of the previous daily candlestick was higher than the moving average. We can examine the chart with the timeframe H4 and assess the indicator readings after identifying the possible trend on the daily chart.

1) Above or below 0 is the MACD histogram.

2) RSI. either upward or downward.

3) Either the candlestick closes above or below the moving average.

The first illustration

We will use the USD/JPY D1 and USD/JPY H4 charts as an example.

Now let's look at chart D1. The previous daily candlestick's closing price is below the moving average. Let's think about the possibility of reducing the exchange rate. Use H4 to open the chart. The last day's candlestick's closing price is below the signal line. We have a sell signal because the MACD histogram is in the positive zone but its volumes are dropping quickly. Although the RSI indicator is pointing lower and has exited the oversold zone, it has not yet entered the overbought zone, which indicates a sell signal. Images 1 and 2

Pic.1

Pic.2

Picture 2.

The second illustration

We'll use the AUD/USD D1 and H4 charts as examples.

The previous daily candlestick's closing price is above the signal line. Let's think about the possibility of an increase in the exchange rate. Launch the AUD/USDH4 chart. The uptrend is confirmed when the closing price of the previous day's final candlestick is above the signal line. Although the MACD histogram is in the negative zone, the volume is fast declining, indicating that the uptrend is continuing and that purchasing activity is occurring. The overbought zone, which is a buy signal, has not yet been achieved by the upward-pointing RSI (Pic. 3 and 4).

Pic. 3