The One Hour Bracketed back set up

This set up is derived from the one hour trade plan

And as you know all charts build the same way, with that in mind let’s look at how we can use and adjust the set up to benefit us when the 4 hour does not do what we want it to do.

Ok like the on hour trade plan you are looking for a Set up on the 4 hour and confirming with the lower charts. But, what you are looking for is for the CCI to be at the +100 line coming down from the over bought (outside the +100 line). With the 4 hour in that position the 1 hr chart should be and must be flat just above the 0 line on the CCI, and it must be coming from he over bought status. If this presents itself in this manner you have a basic set up for the bracketed back 1 hour trade.

Validating the monitor.
There are really two more things that you must do to validate this set up you must have CCI and the EMA’S in your favor when doing this trade.
1) the 30 minute CCI must be at the bottom (the CCI should be at the oversold the farther out the better)
2) The EMA’S must be going the direction that you wish to trade in. (on the 30,1 hour, and the 4 hour)
Stop loss setting
You will need to set a larger stop loss, this is required because you will most likely have to ride out some type of a retracement or pull back. So you must go to the 4 hour chart and measure from the price to the next obstruction and make sure that you will be out side of it with your stop loss. If the distance is more then 50 pips then you should set the stop loss where you are comfortable.
The key to this is trade plan is to check the distance on everything.

USE OF THE EMA’S FOR DIRECTION

I was thinking of a way to tell the direction of the pair and the best way to ultimately be correct when trading and this is what I came up with.

It’s really quit simplistic in the usage and execution. One constant, as I have stated in the other articles that I have shared with you, Is that all charts build the same. So if you have the 15 min chart starting to brake to the short or sell then the further that the EMAs spread apart (separation and angel ) then it stands to reason that the 30 1hr and 4hr will fallow right behind the 15 especially when starting in to a trend .

Then once the trend has been established, then the main consideration should be on finding the pull back and which charts 10 EMA it is pulling back to. This can be determined easily by seeing where the price is as opposed to the 10 EMA first of the 15 then the 30 and so on usually when the price candle passes the 10 EMA on the lower chart you can expect the pull back on the next higher chart to occur and once the lower chart has passed the 20 EMA then you can expect that the pull back is on the second higher chart.

EXAMPLE
When working with the one hour trade plan and you are waiting for the 4 hr to set up for the short move (waiting for the pull back)

You will find that the 4hr is trending short but it must do the pull back to get the CCI in position. You will find in the process of the 4hr doing it’s pull back that the 1 hour has crossed the 20 EMA and if you go on back that the lower charts, when it passes its 10 EMA on the 15 then you are on the way to the pull back of the 30 and it is usually confirmed by the 15 crossing it’s 20 EMA and by the time the 15 passes the 20 the 30 min has probably crossed it’s 10 EMA and so on up the chart time frames.

So if you are looking for a full pull back to get the CCI of the 4 hour in position look at the one hour chart to see if it has crossed the 20 EMA yet and when it does then more times then not you will have your one hour trade plan set up.

EUR/USD evaluation

hello

Well I have been trading the EUR/USD for a few weeks now and I have not been impressed with the smoothness of this pair. let me explain.

first thing is it is an attractive pair in the fact that for the broker I have been using the spread is only 2 pips. and that is a good thing always, because the less you give your broker the more you will put in, or keep in your pocket.

But here is the rub, and when you look at the flow, for the most part it is like most pairs and can be traded using the one hour trade plan

The problem is in the fact that when the news, during the day is happening on capitol hill, the fluctuation of the pair can be misleading and quit choppy. For instance I have been watching a four hour candle and it has had a 58 pip swing, I know that that does not sound bad ,but most of that went up and down 4 times in about 2 hours.

This presents a problem when trading, and trying to find the flow of the chart. this kind of movement on the 4 hour chart represents fast moving choppy candles on the smaller charts and if you have a tight stop loss this could very well put you behind the 8 ball, no matter what trade plan or system you are using.

I have found that the EUR/USD does this often during the day, other pairs have this situation happen as well. It is prudent to keep this in mind when analyzing your charts for set up on the one hour trade plan or any system you are using.

I welcome your comment and look forward to seeing them

Cause and affect of congress and the forex market

Here is a good one for you the stimulus package has been passed by Nancy and her cronies in the house and this goes to how out of touch that some of the house of representative are.

There are Dem's in the sennate that don't agree with the package and the pork in the current bill.

When the house passed the bill the Dow and most currencies went down, now that the senate is talking about the changes and more tax cuts the Dow and most currencies are on there way up

moral of this story is watch what the congress does to give you an idea to what the market may do.

Read the arcived post to get more forex info that you may need!!!!!