In the same manner whenever you find a bearish candle followed by a bullish candle, you can buy a call option with expiry 30 minutes. Now take a look at this 15 minute chart of EURUSD below. In the above screenshot, you can once again find this pattern repeating again and again.

Whenever a bullish candle is followed by a bearish candle, the next 2 candles are bearish and in the same manner whenever a bearish candle is followed by a bullish candle, you will find the next 2 candles bullish. So when you find a bullish candle followed by a bearish candle, buy a put option with expiry 30 minutes and in the same manner when you find a bearish candle followed by a bullish candle, buy a call option with expiry 30 minutes. Important question? Does this pattern work on M30?

This pattern works very well on M15 but not that well on M You can check it. Once you enter into a 30 minute trade, it is set and forget. Either you win or you lose. So you can enter trades in a short span on 60 minutes with this strategy and then enjoy the rest of the day.

Practice this strategy on the demo account first. Just make the next 2 trades with care and you will recover the loss. This is a very simple Asian Session Breakout Forex trading strategy based on price action trading using the 1 hr candlestick chart. Please be fully aware that not all of your trades will be this easy. As you can see, hourly trading strategies are not foolproof.

Money management is vital with this strategy just like it is with any other. Why the one hour chart? Place 2 separate pending orders: a sell stop and buy stop order on both sides exactly at 2 pips from the low and high respectively.

Stop loss should be the distance from high to low of that 1 hour candlestick plus 2 pips.

There are various forex trading strategies, before I talk about the best 1 hour trading strategy, you should that note that in the forex market no time frame is a waste as they all have their purposes. Based on your trading style and understanding of the forex market and top-down analysis, you will come to see that every timeframe tells a story of the past and an anticipated direction of where the market will possibly go.

In this article our emphasis will be on the 1 hour timeframe, to effectively make this work will have to also look at the higher timeframes and lower timeframes as well to make properly informed decisions on trade entry. Swing traders buy at major support levels and sell at major resistance using higher timeframes D1 and weekly.

One advantage of swing trading is that it filters the noise giving you a clear direction of where the market is going. To become successful in forex trading, follow the steps below for the best 1 hour trading strategy;. When trading the forex market , it is important to know that before rushing into indicators; you should first do your market analysis on the naked chart; which will give you a clearer perspective on the market over.

Before you rush off to get the best MACD settings for 1 hour chart, it is important you know your trading style so you know how to apply it to your trading. The truth is if you do not have good knowledge of the forex market structure , no MACD setting will be enough. My dear reader my advice to you is to first stick with the default MACD setting and learn the basics of trading, this is what you need. RELATED: TRADING 1 HOUR TIME FRAME FOREX.

There are many ways to trade the 4hr time frame, but the best 4hr forex strategy is first knowing the dominant trend and being patient for a retracement market structure is inevitable to a resistance or support then joining in the trend continuation. The idea of support and resistance in the forex market cannot be overlooked; it is an essential part of forex trading.

After this is done you can add a supporting indicator to your trading charts like the moving average and MACD; but first, pay attention to the principles of forex trading. The FX market is a decentralized network in which trades are conducted through a centrally located electronic system. As a result, uncertainties make price forecasting difficult, and inaccuracies in trading decisions are common.

Major Banks and financial institutions can have a considerable influence on the market. In forex trading, scalping can come in handy. Scalping tries to profit from short-term price changes, so if there is uncertainty, you can exit the market with a minor loss and return later to look for another opportunity. Another advantage of scalping is the outcome. Scalping trades, in most circumstances, achieve profit levels within minutes or hours. We can see a trade setup when the price is above these MA lines.

Similarly, if the charge moves below those lines and stabilizes, we can switch our viewpoint from bullish to bearish. We are able to forget about what is going on in the higher timeframe in each circumstance.

Keep in mind that a rising moving average crossover indicates a momentum in the trend. If the fifty EMA crosses above the hundred EMA, we go long.

Similarly, if the 50 EMA goes below the hundred EMA, it indicates a sell. The trade setup comes when the EMA 50 moves above the EMA with a bullish candle close above both Moving averages. At that time, the RSI should be above the 30 level, pointing higher.

The same rules apply as for a sell trade, with the exception that the entry will be allowed only after a bearish crossover with RSI support. The trade is good until the price moves beyond the day exponential moving average EMA. In buying and selling trades, the stop loss should be above or below the 50 EMA. The primary take profit is based on a risk-to-reward ratio of You can choose to close the trade or hold depending on the market conditions of that pair at the time.

I am going to show you a clear image below of how to apply 1 hour swing trading strategy.

This category only includes cookies that ensures basic functionalities and security features of the website. Based on your trading style and understanding of the forex market and top-down analysis, you will come to see that every timeframe tells a story of the past and an anticipated direction of where the market will possibly go. Prev Article Next Article. TRADING 1 HOUR TIME FRAME FOREX. This 1-hour forex strategy is using a combination of technical indicators to identify the trend direction and then enter on a pullback. At that time, the RSI should be above the 30 level, pointing higher.

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