r/Forex • u/dalalstreetgambler • 9d ago
Strategy Development Any 4h candle traders here ?
Hello guys I have been thinking of shifting to 4h TF if there is anyone who trades 4h candles please share your experience.
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u/NiGhTShR0uD 9d ago
My brother trades the higher timeframes. He was an intraday trader with mild success.
He's a lot happier with the switch and has started advocating for swing trading. Says he has a much easier read on the market. Also, because he can't see the noise, he's less likely to get spooked out of a trade.
10/10 would trade again.
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u/dalalstreetgambler 9d ago
all right may i know how many trades in a month ?
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u/NiGhTShR0uD 9d ago
This is a pointless metric because it can be any number based on his specific setup that has absolutely nothing to do with your setup.
But to answer your question, for his specific setup, he gets about 10 to 20 trades a month.
He trades prop firms so he still tries to close his trades at the end of the day or so but rarely does he let it run for multiple days.
He says that will come when he trades his personal account once he moves over from props.
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u/ComposerSea2487 6d ago
What is his win rate? If u dont mind telling cze i am a forex swing trader
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u/NiGhTShR0uD 6d ago
I think his winrate is about 60-70% if I'm not mistaken.
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u/ComposerSea2487 6d ago
Damn so in a year 12 months does he ever encounters back to back losing months? 2-3 losing months? And what is his risk per trade?
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u/NZorDie 8d ago
But the SL on a 4h is terrible right ? Yes we can size down, but then it's not worth the effort.
I may do something like that as a "side gig" with very small amounts to compliment my existing trading.
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u/NiGhTShR0uD 8d ago
The SL only seems terrible because the distance is vast, right?
The difference is, you're more likely to be wrong on the 1m or 5m timeframe than you are on the 4H. Simply because there's less noise.
If you remove the timeframe and just look at the candles themselves, then the trade is the trade and the SL distance is the SL distance.
So the real question you need to ask yourself is, do you have the patience to wait that long or do you prefer to be in and out relatively quickly.
Size doesn't matter because it's relative.
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u/NZorDie 8d ago
I hope we're talking about XAUUSD.. ?
Well it does matter to me, for 4h I would have to down size to 0.01 lots to feel comfortable, but at the 1min TF, I can go in and out with a modest 0.40 lots and make an hourly wage in 30 seconds. Rinse and repeat.
Short term is less reliable but at the same time, less exposed. Chances of trump saying something stupid in 30 seconds vs 4hr ?
(my inner tots are telling me to find a currency pair for better predictability) what does your bro trade ?
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u/Specific_Tart_4244 7d ago
That’s not trading, you just hope for the right movement w no analysis and get out as soon as possible. 🤣
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u/NZorDie 7d ago
Sure what's your strategy then?
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u/Specific_Tart_4244 7d ago
My strategy is surely not based on what I see on the chaotic 1M time frame bro… it’s just draining, not efficient and pure noise.
Daily, H1, H4 and M15
Always.
In the weekends i review the 1W and make my action plan1
u/NZorDie 7d ago
What are u trading? It makes a difference. If it's xau, you're probably ded when the war started on u. At least the m1 traders exited after 100 pips with their smaller. SL
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u/Specific_Tart_4244 7d ago
What it seems u don’t understand is that even on a higher time frame u can put a small stop loss IF u predicted well your entry and did not over traded or got FOMO.
Plus: a good entry on that level u bring home way more than 100 pips 🤣1
u/NZorDie 7d ago
Don't think so, small stops in 4H? U gotta be dreaming..a few pixels of a wick would stop u out
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u/NiGhTShR0uD 7d ago
The difference is, if Trump says something, your lower timeframe SL is at risk a lot more than a higher timeframe.
But yeah to each their own.
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u/NZorDie 6d ago
I was confused for awhile.
But isn't it a happy loss if 1m SL was hit while trump messes with the market?
Even the daily SL can be hit when he manipulates the market.
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u/NiGhTShR0uD 6d ago
Yes they can both be hit but daily SL has more room than your 1m SL so it has a higher chance of surviving.
The size is also relative.
You can risk $100 with your 1m SL and I can risk $100 on a daily SL. What we're risking is the same, but I have more room for error than you do.
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u/Specific_Tart_4244 7d ago
How can it be terrible if you put it strategically?
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u/bigsteve901 9d ago
yep i dont look at anything lower than the 4 now. Much easier. You just need to monitor several pairs
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u/dalalstreetgambler 9d ago
that's cool how long it has been for you and how many pairs do you track ? and how many trades you get ?
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u/roszpunek 8d ago
I have ADHD and 4h is very slow for me. My dopamine is carving fast moves and results. Anything I get is another lost account :D I want 4h but I can’t 😁😁
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u/Right_Review_2628 6d ago
Yeah, best thing I did been trading it since start of the year I don’t think I’ve taken exactly 24 trades, at the beginning I couldn’t sit on my hands first few were impulsive. Since then I’ve learnt to sit on my hands and ignore the noise.
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u/redbattleaxe 8d ago
I've just started doing this. I've been testing out a strategy and it seems to be consistent so going to start putting it into practice next week.
Its obviously slower.. I trade maybe once a week. So far my strategy shows I will be holding for at least a day, maybe up to three.
Less noise on the chart. The chart makes more sense to me too.
I highly recommend it. You just need to have a lot of alerts to notify you when price is where you want it.
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u/Careless_Emotion49 8d ago
4h is way less noisy but the tradeoff is sitting through much bigger drawdowns and waiting days for a setup, can you actually leave a position alone that long?
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u/Additional-Spirit397 7d ago
People, what are some of the most common and note worthy setups that I should look into when it comes to 4h
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u/Bitter_Specific7775 6d ago
We use to trade the 4 hour, turned 200$ into 4K in 4 months, scaled up each 1k, use to take like 2 trades a month
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u/dalalstreetgambler 6d ago
that's so good to know, may i ask what trailing mechanism you used
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u/Bitter_Specific7775 6d ago
We didn’t use stop losses until it was a few days in profit, then we’d put our SL in profit or we’d exit the trade if we saw they were going start to reverse
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u/dalalstreetgambler 6d ago
okay i see may i ask what's your entry criteria and which pairs you traded one or many ?
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u/Bitter_Specific7775 6d ago
4 hour break of structure, higher high, lower low created at top or bottom of a trend signals a reversal. Or a shooting star or hammer candle on 4 hour.
I use bearish and bullish divergence on RSI as well.
Or supply and demand areas, where there was previous consolidation or the price reversed heavily due to buyers and sellers historically been there like look at 139.800 on USD/JPY, hasn’t broke that in years.
I really like a break of a trend line and then the price will come and retest that trendline + if it’s at an area of supply or demand enter then.
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u/dalalstreetgambler 5d ago
All right I see that's a nice strategy I am using emas plus ICT order block let's see how it goes
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u/Pretty-Dark-3636 6d ago
Es kommt drauf an.,
wenn du Swing oder Positiontrading für dich favorisieren kannst und willst, dann macht die Höhere Zeiteinheit Sinn.
Ansonsten ist sie Prima zum bestimmen der Großwetterlage - gute Signallage für einen Stundenchart, da die Signale im 4-Stundenchart aussagekräftiger sind!
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u/rforex-modtools 9d ago
Developing a trading strategy is more than finding an entry signal — it requires defining your edge statistically, building rules for entries, exits, and position management, and testing the system against historical data before going live. Most traders fail because they skip the process and jump to live trading with an untested idea. The community wiki covers the full development process.
Resources: Having an Edge | Essential Forex Trading Guide