One Hour Strategy- Engulfing candle entry to short trade!The 1 hour Forex strategy that most intraday traders use as part of their strategy. The 1-hour trading strategy is a very popular trading strategy, as there are so many ways that you can utilize the one-hour period. Rules: Right pair, Right Price, Right Session & Right Time.
KEY TAKEAWAYS
The 1-hour forex trading strategy is a popular strategy amongst beginners and intraday traders due to the variety of ways a forex pair can be analyzed during this period. The one-hour timeframe captures a lot of market movement and can be a good way to gauge the latest sentiment. Many traders use this strategy in conjunction with technical tools such as RSI, MACD, Bollinger Bands and Moving Averages.
What is the 1 hour forex strategy?
The one-hour trading strategy is simply the timeframe that you conduct your analysis on any forex pair. The intraday strategy is popular due to the number of ways a forex pair can be analyzed during the one-hour timeframe. To take advantage of the 1-hour forex strategy, you need three things:
1: Analysis – Your analysis should form part of every single trade you take. It is crucial that you conduct thorough analysis, which may involve certain technical or fundamental factors. For technical analysis, consider using a range of tools such as MACD, Bollinger Bands, Moving Averages or Price Action. For fundamental analysis, you might consider paying close attention to the release of important financial data such as interest rates, CPI, or Labor numbers.
2: Entry – Getting your entry right can potentially mean the difference between more or less profit, and in some cases, it can mean the difference between a win or a loss. Your entry should be confirmed by your analysis. For instance, if you are a fan of using Price Action, then you might wait for confirmation until a particular candle presents itself – such as the morning star for a potential sell.
3: Exit – Your exit is just as important as your entry, although some might argue that it is more important depending on the circumstances of your trade. Planning your exit correctly can mean locking in profits, but more importantly it could minimize losses. Your exit should again have some sort of alert based on your analysis; this is to lock in profits as well as minimize losses.
RULES: Trade right pair, at the right price, during the right session & during the right session. Was noted RSI below under 50 & yellow line above purple line? Yes. The attached trade had all of the four checked off (which gives you high probabilities of success doing this short trade for up to a 237 pips) of profit on your trade. Only three candlestick setups you ever need to know and use which are Engulfing (two candles), Harami (two candles) and/or Pinbar (three candles)<-- they are the one's I use exclusively in trading forex.
