Trading is not always easy and you cannot argue that one has to acquire a certain level of expertise before becoming a successful trader. Part of this process is studying the market and working out a strategy for your trades. Those strategies vary based on the tools used to execute them.
One of such tools is market charts and specifically intraday charts. Trading strategies based on intraday charts are commonly used among traders. However, choosing between time frame options can get tricky.
On one hand you want your chart to be as informative as possible in order to make an adequate decision. But on the other hand you cannot overload your brain with too much data, as it will not be capable to process it correctly.
Forex 4 hour chart strategy has been globally acknowledged as the golden middle between small and large time frame charts. This method is best suitable for beginners as it requires less attention compared to lower frames.
Another upside for beginners is that unlike other strategies of Forex trading 4 hour chart method does not require advanced skills. Later, as the trader gains experience, they can move on to more detailed time frames such as 1 hour.
4 Hour and Daily Forex Strategies
The most important thing when it comes to using the Forex four hour strategy is not to use it on its own. Always have a higher time frame as a reference and use it when in doubt.
Professional traders tend to use the Forex 4 hour chart strategy in combination with the daily chart strategy. Both daily and 4 hour strategies are widely used in so called swing trading. In which the trader’s goal is to seize large changes (aka swings) in the market.
The crucial tip for this method is to mark your support and resistance levels on both charts. As a result, you will have a more comprehensive picture of the market, which can be beneficial for trading on every level.
Also do not expect the market to go directly to your goal in just the 4 hour period. Be prepared for a certain amount of pullbacks. Don’t worry though,the more you trade the better you will be able to read the signs for those pullbacks being just a part of a trend or essentially leading to a reversal.
