Skip to content

How to Play the Hourly Stock Market

Thanks for the guidance Reply. Despite all the hype about rapid-trading schemes, a thorough online search of the academic literature on stock trading does not reveal any academic studies pointing to hourly stock market trading strategies that produce more than ordinary profits. That is great Nial.. SazleyFx November 4, at 8: Please keep up the good work! This one hour Forex strategy is distinctive because of the fact that, in parallel with standard signals, it often shows divergence - convergence signals. Just as not buying junk food at the supermarket is the easiest way to avoid eating it…not immersing yourself in low time frame charts is the best way to avoid the temptation to constantly be in the market.

The first hour of trading can present a number of opportunities but you need to know what you are doing. In this article I cover specific times of day looking at data from the NYSE and how you can use volatility to capitalize on the early trends. See the setups that work during the first hour of trading.

Hourly Trading Strategies

This one hour Forex strategy is distinctive because of the fact that, in parallel with standard signals, it often shows divergence - convergence signals. You can add another indicator to this chart, it is better to say another moving. If you add MA with parameters 21 and shift 5 to this chart you will get the opportunity for long orders. Furthermore, this one hour forex strategy gives us another signal that is an intersection of two moving averages, and it provides us with an opportunity to weed out the wrong signal for the closing order.

So, the order is closed not when the price graph meets the MA13, but when the price graph crosses the MA However, we should note the nuance of this trading strategy that is a large number of false alarms. To do this, you just need to adjust the parameters of the basic indicator of the trading strategy. The picture shows the Relative Strength Index with the parameter Another one hour forex strategy is described further.

It is based on a single indicator, which is called Bollinger Bands, or Bollinger Band line. This indicator allows you to work in a sideways motion, and in long positions as well.

However, due to its interpretation and changes in the parameters, the Bollinger Bands indicator remains the difficult one for many traders. But here we will explain its signals in a simple way. So, the parameters are: The rebound from the top and from the bottom line of Bollinger Band is a signal for the orders opening.

Thus, the trade is conducted within the channel of price movement. The middle line is used as a simple moving and defines the main trend direction. Furthermore, two significant signal should be noted. The first one is when the price does beyond the upper or lower Bollinger Bands. This situation indicates that the movement will continue. The second signal is a strong narrowing of the canal.

The example is shown on the picture below. In this case, you should pay attention to the situation when the middle line meets the price graph, because it is a strong signal for opening of the order. Candlesticks give the trader an idea what the market is doing…. To get around this going to the lower time frames have the advantage once you have an idea of the direction of the trend the period to trade that with better entries and better risk to reward ratio.

On a 4 hour plus chart 60 — pips is the norm where on a 15 — 60 min chart 20 — 30 pips is about right……so with money management on a 1: Thanks Nials, higher time frames are the only way to go , relax, chill-out , enjoy. Since i subscribed and read your articles i managed to improve my trades immediately. Wonderful and excellent examples to explain the significance of longer time frames in forex trading.

But I wonder about day trading as their living for longer daily time frames. Oh how I agree with this Nial I hope every aspiring trader takes note and takes thes points onboard, if I had this article years ago it would have saved me tons of money…….. Thank you for a really good convincing analogy for sticking to the bigtimes!

Your explaination of the failed pinbars shows why is very instructive. Please keep up the good work! With a method such as price action, what you write makes sense. On the other hand though, smaller time frame charts offer greater price development, rarely seen on daily charts or higher maybe once in 3 months.

If you can read what price is telling you which always needs to be done with context of a higher time frame IMO , then you can only trade those pairs that more probably will give you a big move, and you can also time the market tightly to give you a nice risk-reward. While your stop is within the daily range, if you read the chart correctly and time the breakout properly, your stop will most likely not get hit.

Trading in this manner prevents over trading because there will only be pairs that meet your criteria per day or 0 sometimes , nor does it necessarily demand a lot of attention, depending on your trading plan. You could for example have a trading plan that calls to let the trade go for the day, and not actively manage it within the day.

Often a strong breakout takes place quickly and you can move your stop to breakeven and the day is done for example that happened to me yesterday on a long on GBPJPY. They also want to minimize public participation in the big move. Understanding this and how it plays out on the chart, allows you to discern with some accuracy on what position they are taking, and when the breakout could commence.

I have not read the above write up yet but before i do, i want to tell everyone here that daily time frame is the stress-free holy grail.

Let me now go and refresh my learning fron the above article, i am quiet sure it will be hot. Some people use the right indicators, some people use multiple time frames, and they become very good at it. Hi mate, thanks for this. Because i learnt off you first i only look at daily and 4 hr charts i Would love to know more about what you get out of 1 hour charts, Gye: I almost totally agree with this article but any successful daytrader knows that taking decisions based on 1 candlestick on 5 min chart is a noob error.

Also, when you daytrade you also need to pay attention on higher timeframes as well, for instance, if a bullish 4 hourly candlestick is forming during market hours and moving averages on 5 min chart and pointing up, then it is time to go long and stand market noise. Day trading is difficult because of the market noise.

Also, daytrade requires being glued to the computer during hours so if you left your day job for better life, day trading is not definetely for that. Thank you very much Sir for your inputs in our trading. I for one need to change from my 30min time frame to an hour.

I have observed that in 30min time frame I can hardly spot the market trend. As a Forex beginner,this article comes particularly for me as if I personally requested for it. I have been struggling to understand the best time frames and I find this very enlightening. Nial, your articles are always encouraging and enlightening. I am working on my discipline and patience to follow the price action in the longer time frames.

I will be reporting back on my progress. Thanks for the guidance. Your email address will not be published. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members.

Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website.

The past performance of any trading system or methodology is not necessarily indicative of future results. Forex, Futures, and Options trading has large potential rewards, but also large potential risks.

The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors.

Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

Below, we see the 5 minute USDJPY chart, and from this data we really cannot tell if the overall trend is up or down, as the market appears to just be ebbing and flowing very quickly and without much underlying or consistent sentiment: Small time frames demand a lot of attention.

Learn, change, grow… I obviously cannot speak for everyone in the trading world, but the traders who contact me on a regular basis about struggling in the market and blowing out their accounts, are typically the ones who trade the lower time frames…that has to say something right?

Checkout Nial's Professional Trading Course here. Kevin cunningham November 11, at 7: You explain it the best! Durell Gordon March 9, at The same chart pattern in different time frames can be comparable.

Zee November 10, at 6: Zen October 7, at 7: Daniel June 25, at Njabulo Lukhele March 15, at 7: Duncan Ok August 26, at 2: Nofrizal February 10, at 6: Arend van Schalkwyk November 27, at 8: Shaikh November 6, at 3: Dotun Olabisi June 13, at 6: Thanks man for the info info is power thumbs up Reply.

Michael June 8, at 1: Im in no rush to make money, the market will be there the next day. Sandro May 14, at Nial, very good, for informations.

Marcin Strojny May 14, at 3: Moderator Note — Comment length edited Reply. SazleyFx November 4, at 8: Vic May 13, at 3: Great article Nial thanks. To other commenters though, what does god have to do with trading?

Hi Nial, Thanks for your sharing… I very agreed about time frame to trade.. Cheers nial thanks to your trading strategies im really improving. Ryan May 12, at Apple May 11, at Paul May 11, at 5: Thomas May 11, at 2: Something splendid article as usual. May God bless you and your whole family.

Euan May 11, at 1: Nicholas Huang May 11, at Nial gave a very good analogy of why higher time frame is more trustworthy. Wan Sezul May 11, at Siyabonga May 11, at Mal May 11, at Thank you for keeping me on track Reply.

Gustav May 11, at 6: PK Moghe May 11, at 2: Peter Grimes May 11, at 1: Paddy May 11, at 1: Andy May 11, at 1: Sam May 11, at 1: Nabs May 11, at Great articles as usual For beginners, focus only one daily chart! Geetha May 10, at Felix May 10, at Thank you Nial, very good article. It cleared some questions about time frames. Gye Bennetts May 10, at Oscar May 10, at Blessing May 10, at Francis May 10, at Jet Lee May 10, at 9: Thanks once again Nail!

Great explanation and analogy!


Dec 09,  · Welcome to Class 3 of the Real Life Trading Intermediate Series! In this video, you will learn how to effectively trade the 1 hour chart, using and identfyin. As you can see, hourly trading strategies are not foolproof. They certainly have their upside such as limited screen time but there is no “best” trading strategy. Money management is vital with this . Nice strategy, Thanks a strategy that actually looks like it could work. I backtested against 10 years EURUSD and it was profitable. win rate was around 43% at , trades with an average win of pips. USDJPY was profitable but only just win rate of 30% This is one of few strategies that actually backtested well over 10 years on Daily chart.