How I Love You, Four Hour Chart, Let Me Count the Ways

I’m not trying to pick favorites – the title of this post might insinuate that. In fact one of the questions I get most often is “Which time frame is the best?” and really there is no such thing.  It depends on your trading style, your risk tolerance, the market cycle on the individual time frames, upcoming economic releases…

I scan and take trades off just about any time frame: 15, 30, 60, 180, and 240 minute charts, daily or “end of day” chart, heck I’ve even been known to venture into a weekly chart or a short term chart like the five minute chart for e-mini and stocks during the open. But there are times when my schedule gets busy or I just want to “set it and forget it” but still be able to take advantage on intraday moves on a longer time horizon.

That’s when I call on my friend the 240 minute/four hour chart. Here’s an example of a chart I am watching this morning.

This is a classic symmetrical triangle pattern, a “momo” (momentum) set up. We just sit back, part a stop order and wait for the break. Remember that triangles are dynamic patterns and the entry price (determined by where prices pierce the trendline) will change slightly with each new candle/bar.

Want to learn more about my timeframes and how to handle analyzing mltiple time frames in any market?  Check out my video chanel at Revver

Tagged as: eur/usd, forex, Forex Trading, raghee horner, time frames