Forumk Business Learning To Trade The 4-Hour Time Frame

Learning To Trade The 4-Hour Time Frame

Those who are relatively new to the trading industry might think only daily time frame trading is profitable. They always try to find high-quality trades in the daily and weekly time frame with a hope to make more profit. But if you research the trade history of the UK professional traders, it won’t take much time to understand they trade the lower time frame. By the term lower time frame we are referring to the 4 hours and 1-hour time frames. If you can develop a simple trading strategy, you can easily make a consistent profit. Let’s learn the perfect way to trade the 4-hour time frame.

Find the key trading zones

Being a new trader, you might not understand the importance of key support and resistance level. Most of the time, you will end up by executing trades in the minor support and resistance level. But to trade the 4-hour time frame, you need to find the key trading zones. Though there are many ways to find such levels, the pro traders prefer to use the simple trend line and horizontal line tools. You need to connect three significant lows or highs in the market to find the desired trading spot. Once you find these levels, you can easily execute the trade by analyzing the other important variables.

Focus on the candlestick pattern

Finding the key support and resistance level in the 4-hour time frame is really easy. But when it comes to trade execution, you need to rely on the different formations of the Japanese candlestick pattern. In other words, you have to master price action trading strategy. You might be completely new to this profession but if you use the Saxo demo trading account, it won’t take much time to develop your trading skills and trade the market with an extreme level of precision. Being a new price action trader, make sure you use the multiple candlestick pattern formation because it will greatly improve your win rate.

Execute trade during volatility

You need to understand the importance of market volatility to make a consistent profit. The pro traders prefer to trade the market after the news release. It allows them to make a decent profit within a very short period of time. However, you need to be extremely careful with your risk management policy since many new traders have blown up the entire trading account by taking unnecessary risk. Once you spot the perfect trade setup, analyze the risk-reward ratio. If things go in your favor, execute the trade with a tight stop loss.

Trading in favor of the market trend

Trading the 4-hour time frame is a very challenging task. You have to focus on the important variables of this market to make a decent change in your life. Those who are new to this profession should definitely trade the market along with the trend. If you execute any trade against the major trend, the chances are very high that you will lose a big portion of your investment. Think twice before you place any trade since you can never change anything once the trade is live.

Trade with confidence

Those who trade the market in the 4-hour time frame have to deal with emotional stress. At times you might have to lose a huge sum of money but this doesn’t mean you will have to quit trading. Think about the long term goals in your trading business. Being a new trader, you have to trade the market with confidence since it will help you to deal with the dynamic loss. Once you learn to manage the loss, you will never have to think about making a big profit. Learn to play it safe so that you can deal with any complex market. Never take the unnecessary risks even though you might have a huge sum of money.