Changing trading hours and trading time frames

An article by Gus    1 Comment

Hey everyone so it has been quite an interesting month with so much happening in Europe, which we still have not seen an end too. I just wanted to drop a quick word in about how I have started to change my trading habits to better suit what I want. Many of you know I trade the 1H and 4H charts and have gone into the small time frames a bit to give them a try, but recently I have decided to change all that. The reason I have been wanting to change is that I want something I can do at night and not have to be up from 3am to 11am just to make a profit.

Thanks to some people from ForexFactory I have started to trade daily and weekly charts, this will let me focus more on the trend, rather than just scalping through the day. With the help from Bob over at the 10.0 Trend Thread they have come up with a great system, which could not be done without the help of Scalou`s Support/Resistance indicator which is the masterpiece that makes it all work. The indicator actually shows daily support/resistance lines and changes them from day to day. On the template we can also see dotted lines which show the 4H support/resistance levels, this brings another added signal on when to buy and exit.

The best part of the system is that since we are trading on daily charts we can really just look at charts 3 times a day and not worry about missing a lot of information. Below we can see a screenshot of the EUR/USD and how well it works on trending markets.

The purple line shows the three candles from November 14 until today, the signal to sell started the black line, which on Monday morning was the D1 Support line. So we would have entered at 1.36528 and would have made a nice amount of pips. The idea would’ve have been to exit and the next support line at 1.34833 or could have put the MPTM (Multi Purpose Trade Manager) expert advisor to break even at 40 pips and keep the ball rolling. If you still where in the trade it would be around 180 pip profit so far and I think it could still go a little further.

The big reason I love this system and the higher time frames is due to the fact that I don’t have to be up at 3am to trade, especially since I am in Central Standard Time. I can now focus on new trading ideas rather than being sleep deprived all day. With daily time frames I can check my charts before going to sleep, when I wake up and normally middle of the day.

I will keep updating on this system as it progresses and highly recommend every one to pass by the thread over at ForexFactory to get all the new details as they develop on a daily basis.

Gus FX