Hi there,
Firstly I would like to say thank you for all the free information you provide through your website, it’s brilliant and I am now trying to adapt my trading to your methods. I have purchased both of you’re ebooks which were fantastic, they really give you a knowledge of how large institutions trade and view the market.
For me know it’s just trying to practice to see the clues where large in studious and banks are buying or selling.
Because I work full time I only really get chance to trade daily and perhaps 4hr candles, I understand that you trade the 1hr candles as well, my questions are:
What would be the maximum amount of time that a zone would be valid on the 4hr TF? I know the 1 hour is around 24hrs and the daily is around a month.
Also if I was trading 4hr zones, would you advise me to drop to a lower TF to see any price action rejection candles to trigger the trade, maybe drop to 1hr?
Thanks again for all the free info you provide.
My Response:
If I were in your shoes, I’d strongly lean towards trading the daily chart over the 4-hour chart…
Here’s the thing: The 4-hour chart sits in a bit of a no man’s land.
I term it an ‘in-between’ time-frame…
The banks typically resort to three time-frames when placing trades: a short-term time-frame (like the 1-minute or 5-minute charts), a medium-term time-frame (such as the 1-hour chart), and a long-term time-frame (like the daily chart).
These three time-frames best represent the three main market time horizons—short term, medium term, and long term… Other time-frames just mesh these horizons together.
For instance…
The 4-hour chart tends to blur the lines between medium and long-term trends.
Honestly, I haven’t done extensive testing on the 4-hour zones, so I’m unsure about how long it typically takes for the market to return to them.
Therefore, I’d strongly advise sticking to the daily demand zones.
When you’re all set to enter trades, consider switching to a lower time-frame for entry signals. The 1-hour chart works well if you’re trading zones on the daily or 4-hour chart. But, if you’ve sourced your zones from the daily chart, you can scout for signals on the 4-hour chart too.
Have a great weekend…
PAN.