The 1 hour chart offers flexibility in terms of what you want to do, the market moves slow enough for you to be able to analyses the chart for trading opportunities and also generates enough trades so you have lots of decent chances of making money. Also, the size of the stop-loss will be much lower than if you were trading the daily chart. The RexDog Hour Close Lines plots the last 4 previous hour (60 minute) closes. Extremely helpful indicator for traders who trade on lower timeframes below the 60. The plotted lines are also offset to represent that hours close location on the chart-- but keep the below in mind. The offset is set for a default resolution of 5 minutes. A factor of 6 would then be the 6-hour timeframe. Needless to say, if you're entering off the 1-hour chart, then the 4-hour timeframe can be your higher timeframe. Or the 6-hour timeframe can be your higher timeframe or even a 5-hour timeframe can be your higher timeframe. Because anywhere from a factor of 4 to 6.
VIP EAP Mentorship Program - https://eaptrainingprogram.com/video-sales-pageFREE FULL FOREX STRATEGY - https://eaptrainingprogram.com/fullstrategyrevealedPro The answer is, yes, I sometimes do trade the 1-hour or 4-hour charts on their own without taking into account the daily or weekly time frame. However, 90% of the time I use the 1-hour and 4-hour charts to confirm the higher time frame signal, mainly the daily chart time frame.
Here's a simple profitable strategy on the 1 hour chart. I know it's a popular time frame and have yet to show a strategy tested on the 1 hour so here we go. Most day traders trade near the open, but stop trading by about 11:00 or 11:30 a.m. EST, just before the New York lunch hour. The lunch hour is typically quieter, so day traders usually take a break, as there are fewer quality trade opportunities. Day traders will resume day trading after the lunch hour.
5 Day trading with the best Stochastic Trading Strategy. 6 (Rules for a Buy Trade) 7 Step #1: Check the daily chart and make sure the Stochastic indicator is below the 20 line and the %K line crossed above the %D line. 8 Step #2: Move Down to the 15-Minute Time Frame and Wait for the Stochastic Indicator to hit the 20 level. I have been trading 6 hour charts for many of the same reasons you mentioned about 8 hour charts. I like the 6 hour charts because they allow me to structure my day into 4 segments to capture the opening of new bar. I really do think these longer intraday time frames are the way to go if you can't spend all day in front of a computer. More advanced day traders may combine the weekly and 2-hour chart to find reliable 2H chart day trading set-ups. In that instance, one is using a weekly chart trading signal on the 2-hour chart as the day trading set-up.
The chart below represents the price action of XYZ for a period of 3 trading hours. Each "bar" or "candlestick" represents the opening, closing, high and low of each 2-minute interval for the time period. 2-minute charts are commonly used for scalping or day trades that last from several minutes to a few trading hours: 2 min. - Intraday.
An important note is that most indicators will work across multiple time frames as well. Why does 4 hour bar close 1 hour later than daily bar? 6 replies. How difficult to make 10 pips every day with only one hour trading? 29 replies. Average true range for 1 hour and 4 hour charts 2 replies. X-1102 1 hour , 4 hour and daily Tf trades 7 replies.