I believe it’s the norm to use 4 hr charts for the type of trading I’m doing; which I guess is like day trading the trends. 4 hr charts let me see the weekly trend which is what I’m using to make my trades. If a chart looks solid by the time I’m ready to close out (or go to bed) and I’m still in a trade, then set the stops and go to bed. Otherwise, I’d rather be in and out of the trade within the day.
So on with the trade review. This is a 4 hr chart. I got into the trade before heading to bed last night around 12am, and set an alarm for 5:30 to check out the chart. My first position, the take profit, hit it’s mark. The day progressed and I hit 3 good red bars, getting me some good profit. Then, the little green candle showed up and looked pretty persistent, so I pulled up a shorter time frame chart.
Above, the 4 hour chart. Below, the 1 hour chart.
I’m seeing a strong red candle with a lower wick, implying that some of the selling pressure was relieved. 2 more red candles followed, not making a new low, and 3 green candles after that. This sort of rounded bottom showsverywell on a 15 or 30 minute chart, suggesting the end of the trend. However, I’m still new to the system and I’m not sure if I want to close out the whole trade. The bars following theverylarge green bar on the 4 hour chart show that there was some selling pressure and periods of inactivity before price moved up a little more.
Considering this, I amready to close out of the trade before it hits the system’s stops, so I’m moving both of them down to 8 pips above the little green arrow, at 1.5570, with thoughts of moving it lower as time goes on.
- 365trading posted this