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RoboForex - www.roboforex.com
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[QUOTE="Vlad RF, post: 199311, member: 61796"] [B][SIZE=5]How to Trade by Day-Hour Strategy?[/SIZE][/B] [I]Author: Andrey Goilov[/I] [CENTER][IMG]https://blog.roboforex.com/wp-content/uploads/2021/09/3.jpg[/IMG] [B]Dear Clients and Partners,[/B][/CENTER] Looking for signals on larger timeframes and then confirming them on smaller ones is quite a widespread strategy. Even in John Bollinger’s book on graphic patterns traders looked for graphic patterns in D1 charts and then switched to other TFs to wait for the same patterns to appear on them. The Day-Hour trading strategy is exactly such a way of medium-term strategy, by which the trader searches for entry points on daily charts, then opens an H4 and assesses the strength of the signal on it. However, you do not need to look for any graphic patterns, as this type of trading is highly subjective: one trader sees one pattern, while another trader can see an absolutely different one at the same place of the chart. By this strategy, the trader only cares for signals from technical indicators. This makes trading completely objective. [SIZE=5]Which indicators to use for Day-Hour?[/SIZE] This strategy requires use of indicators. The first one is the usual Moving Average. The indicator is easy to use: [LIST] [*]If the price is above the Moving Average, then the trade is bullish, hence look for signals confirming the growth; [*]If the price has dropped under the MA, the trend is bearish, and you need selling ideas. [/LIST] The other two indicators used in the strategy are oscillators: the MACD and RSI. [img]https://blog.roboforex.com/wp-content/uploads/2021/09/Pic-1.png[/img] Most often, traders use a trend indicator and one or more oscillators to look for signals that confirm the trend. All in all, add to the chart the following indicators: [LIST=1] [*]Moving Average (3). The “shift” parameter is also at 3. The line will be shifted three candlesticks to the right. This indicator is necessary on the daily chart. [*]The MACD with the parameters 12, 120, 5. This is an indicator fir H4. [*]The RSI with period 9. The overbought level is 70 and the oversold area is 30. This oscillator is also for H4. [/LIST] All these indicators can be found in the standard settings of MetaTrader 4, MetaTrader 5, or R Trader. This is a huge advantage as you do not need to download or install anything extra. [SIZE=5]Closing thoughts[/SIZE] The Day-Hour strategy is meant for trading the trend, as one of the main traders’ rules goes. For a decent market entry, the strategy implies analyzing both D1 and H4 of the instrument. This method decreases risks and gives a chance a catch a good movement on the D1. The drawback of the strategy is that it remains valid only when there is a good movement on the chart. When the price is in a flat, the trader will constantly be seeing breakaways of the MA up and down, which might entail a series of bad trades. On the other hand, opening a position by a trend that is just beginning, you never know what levels it might reach. [URL=https://blog.roboforex.com/blog/2021/09/03/how-to-trade-by-day-hour-strategy/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text]Read more at R Blog - RoboForex[/URL] [B]Sincerely, RoboForex team[/B] [/QUOTE]
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