The 4H Trader Trading System For MT4 uses the power of simplicity in forex trading. Therefore, if you are looking for a trading strategy that works in most financial markets with a higher profitability ratio, you can choose this strategy. After completing this whole writing, you will apply this trading system with effective money management rules.
The 4H Trader Trading System For MT4
Trading in a 4-hour timeframe is suitable for those who focus on swing trading without monitoring the market every minute or hour. If you focus on the market 6 times a day (4 hours X 6= 24 Hours), it is enough. Therefore, you can spend the rest of the day with other tasks or with your family.
This trading system uses the SaneFX trading indicator that shows the price direction with a bullish or bearish arrow. You can open the chart after the specific time, and if there is no trading signal, leave the platform and do other works.
We can see how the SaneFX indicator shows the price direction in both bullish and bearish market conditions in the above image. The red-colored arrow indicates the sell signal while the Green colores arrow indicates buy signals. Moreover, it should appear below the price for bullish possibility and above the price for sell possibility.
Overall, our main aim is to take trades from swing levels. If you are in the forex market for a long time, you should know why swing trading differs from position trading and scalping.
The best benefit of swing trading is that you can earn much profit with minimum risk, and you can take trades in both bullish and bearish sides in every leg.
Bullish 4H Trader Trading System For MT4
The bullish trading system is focused on trading instruments, including the EURUSD, Dow Jones, Crude Oil, and Gold. However, you can apply it to other assets but based on the past experiment, the best output comes from the trading mentioned above instruments.
On the other hand, the logic behind using the H4 timeframe is to make a balance between the highest profitability and lowest risk.
Taking trades on higher timeframes is profitable, but it is time-consuming and costly. On the other hand, the lower timeframe is less expensive, but it requires consistent monitoring of the price.
When to Open the Buy Trade?
- Monitor the price 6 times a day on the above-mentioned trading instruments and wait for suitable trading conditions.
- The price should move high by making a higher low and higher prices, and The Shane FX bullish signal appears in the chart.
- Make sure that the bullish signal is below the price and wait for a candle to close.
- The signal is valid after the closing candle only. The candle close is significant for this strategy as it is an indication that the price created the swing low.
How to Manage Buy Trade?
Taking a buy trade using this strategy means you at the bottom of the swing. Therefore, you should put the stop loss below the entry candle with some buffer or fixed levels (will be discussed later). As we are trading in the H4 timeframe, you can use a 10 to 15 pips buffer in every trade. Moreover, you should consider the lot size based on your trading capital.
After that, focus on taking profits where you should close the trade based on the following rules
- For Gold- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For Dow Jones- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For US Oil- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For EURUSD- Stop loss is 60 pips, and TP 1 is 100 pips.
Bearish 4H Trader Trading System For MT4
The Bearish trading system is also focused on trading instruments, including the EURUSD, Dow Jones, Crude Oil, and Gold. However, you can apply it to other assets but based on the past experiment; the best output comes from the above-mentioned trading instruments.
On the other hand, the logic behind using the H4 timeframe is to make a balance between the highest profitability and lowest risk.
When to Open the Sell Trade?
- Monitor the price 6 times a day on the above-mentioned trading instruments and wait for suitable trading conditions.
- The price should move low by making lower low and lower high in the price, and The Shane FX Bearish signal appears in the chart.
- Make sure that the bearish signal is above the price and wait for a candle to close.
- The signal is valid after the closing candle only. The candle close is essential for this strategy as it is an indication that the price created the swing high.
How to Manage Sell Trade?
Taking a buy trade using this strategy means you at the top of the swing. Therefore, you should put the stop loss above the entry candle with some buffer or fixed levels (will be discussed later).
As we are trading in the H4 timeframe, you can use a 10 to 15 pips buffer in every trade. Moreover, you should consider the lot size based on your trading capital.
After that, focus on taking profits where you should close the trade based on the following rules
- For Gold- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For Dow Jones- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For US Oil- Stop loss is 70 pips, TP 1 is 100 pips, and TP 2 is 200 Pips.
- For EURUSD- Stop loss is 60 pips, and TP 1 is 100 pips.
Conclusion
The 4H Trader Trading System For MT4 is a profitable swing trading system that applies to all traders’ levels. This trading system’s core element is the Shae FX indicator that shows where to buy or sell directly in the chart. Therefore, you can follow this trading strategy even if there are essential releases like the FOMC or NFP.
