about 1st 4 hour candle breakouts

munzermohammed · #1 (**permalink**) 01-31-2009, 08:23 PM

Hello all
I have read in some arabic forums about a forex strategy which gives really good results and u can watch that clearly when concentrating on charts
This strategy(posted by Jamal Omar) depends on the 1st 4 hours candle in the week which opens at 00.00 AM(beirut) monday= 10.00 PM sunday GMT
When market opens on monday with a new 4 hours candle we wait till this candle closes at 4.00 AM(beirut)=2.00AM GMT
Then we put 2 orders
BUY stop order at : high of the 4 hour candle + 15 pips
Stop loss is at the low of this candle
Take P: (High-Low)*2 for the 4 hours candle
SELL stop order at : Low of the 4 hours candle - 15 pips
Stop loss is at the high of this candle
Take P: (High-Low)*2 for the 4 hours candle
It gives good results on :
eurousd-eurchf-eurgbp-eurchf-eurjpy-usdjpy-gbpjpy-usdchf-usdcad-gbpusd
orders are valid till execution and when executed left till hitting stop or TP and if not left to the end of the week where we have to close the unexecuted one and close the opened one whatever the result was

Have any one read about some thing like this strategy
if yes, where?
if not , can we develop it?

kol8701 · #2 (**permalink**) 01-31-2009, 10:21 PM

I'm not sure i have heard about this, i'd check it out though... so for a particular pair of currency you can only trade once? which is at the begining of the week right.

aelimian · #3 (**permalink**) 02-01-2009, 03:51 AM

Quote:

Originally Posted by munzermohammed

Hello all
I have read in some arabic forums about a forex strategy which gives really good results and u can watch that clearly when concentrating on charts
This strategy(posted by Jamal Omar) depends on the 1st 4 hours candle in the week which opens at 00.00 AM(beirut) monday= 10.00 PM sunday GMT
When market opens on monday with a new 4 hours candle we wait till this candle closes at 4.00 AM(beirut)=2.00AM GMT
Then we put 2 orders
BUY stop order at : high of the 4 hour candle + 15 pips
Stop loss is at the low of this candle
Take P: (High-Low)*2 for the 4 hours candle
SELL stop order at : Low of the 4 hours candle - 15 pips
Stop loss is at the high of this candle
Take P: (High-Low)*2 for the 4 hours candle
It gives good results on :
eurousd-eurchf-eurgbp-eurchf-eurjpy-usdjpy-gbpjpy-usdchf-usdcad-gbpusd
orders are valid till execution and when executed left till hitting stop or TP and if not left to the end of the week where we have to close the unexecuted one and close the opened one whatever the result was

Have any one read about some thing like this strategy
if yes, where?
if not , can we develop it?

Any statistics on this breakout system? Thanks

RickW00716 · #4 (**permalink**) 02-01-2009, 05:03 AM

Just looking at this on my charts it appears to have some merit.
Also if the first breakout fails, taking a trade in the other direction seems to work.

I think this would need a good money management plan, though.

munzermohammed · #5 (**permalink**) 02-01-2009, 09:02 AM

Thanks for all posters in this thread
I found that it is better also to take the two 4 hours candles after the open of the market and putting entry orders above and below the higher high and the lower low of the 2 candles
this works better
But requires a lot of stop loss pips!
when looking on charts it seems so powerfull
I have not tested it even on demo
I have no statistics...
I think this seems a good naked strategy needs to be developed..
What U say?>

munzermohammed · #6 (**permalink**) 02-01-2009, 02:26 PM

what about entering with 2 lots with same stop loss and different targets
1st target= High-low of the 4 hours candle
2nd target= (high-low)*2 with trail stop equals high-low
so when price reaches first target the stop for the 2nd one is on breakeven

Fx Referee · #7 (**permalink**) 02-02-2009, 02:05 PM

Quote:

Originally Posted by munzermohammed

Hello all
I have read in some arabic forums about a forex strategy which gives really good results and u can watch that clearly when concentrating on charts
This strategy(posted by Jamal Omar) depends on the 1st 4 hours candle in the week which opens at 00.00 AM(beirut) monday= 10.00 PM sunday GMT
When market opens on monday with a new 4 hours candle we wait till this candle closes at 4.00 AM(beirut)=2.00AM GMT
Then we put 2 orders
BUY stop order at : high of the 4 hour candle + 15 pips
Stop loss is at the low of this candle
Take P: (High-Low)*2 for the 4 hours candle
SELL stop order at : Low of the 4 hours candle - 15 pips
Stop loss is at the high of this candle
Take P: (High-Low)*2 for the 4 hours candle
It gives good results on :
eurousd-eurchf-eurgbp-eurchf-eurjpy-usdjpy-gbpjpy-usdchf-usdcad-gbpusd
orders are valid till execution and when executed left till hitting stop or TP and if not left to the end of the week where we have to close the unexecuted one and close the opened one whatever the result was

Have any one read about some thing like this strategy
if yes, where?
if not , can we develop it?

But have you consider the moment when price/market jump!!!

Thanks

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