1 hour pin bar strategy

If you are in the beginning or developmental stages for learning how to trade the forex market, I definitely recommend learning to read price action off the 1hr, 4hr an daily time frames. For our purposes, we will concentrate on the 4hr chart. Price Action is the result of order flow the total summation of all buy and sell orders. It really matters not why people buy and sell, or if they are buying and selling, what matters is who has dominant control of the market, where is the market most likely to go, and how can we trade it.

With that being said, a few minutes of price action can more often than not, represent a false move, perhaps Toyota buying some USD with JPY, and very likely have any significant force behind it to drive the market, bring in other players, and be the start of a big move.

Think about bar many 1min, 3min, 5min, 10min, 15min, or even 30mins of price action throughout the day will really be representative of a major move and driving force throughout the day? Now, think about the 4hr chart. No matter how you slice it, 4hrs is half of a trading session for the most part.

If a rejection happens on a 4hr chart, it likely represents a large rejection because to sustain that rejection, the market had to close the entire 4hr candle while maintaining the rejection till the end. Time is a critical component when pin price action and representing order flow. Of course the price action context leading up to it is key and informative, so make sure to understand this.

But if a key level can sustain the directional move for 4hrs as opposed to 5mins, then it had to do so through increased order flow and participation from the market.

That communicates there were more players and more money behind this move. But do this for 4hrs and sustain it into the strategy, and we are talking strategy participation, orders, money strategy participants.

For strategy to sustain a particular price action move for 4hrs means no matter how many players, sentiments, and ideas there were participating in the market, the pin theme held for half the trading session and quite a long time. But on a one min time frame, a 5min, or even 30min time frame, these moves could be simple noise which can move the market up to 30pips without having any major force behind it.

Think about how many 5min candles in between the NY close and Tokyo open and how much order flow will really be behind that? Think about how many 1min and 3min candles will be between the 3rd and 4th hours of the london session where volatility and pip ranges generally decrease and how they will represent less order flow and participation. Then you will see how ineffective these candles can be and how what your reading has very little meaning.

Think about it, if price holds inside the previous price range on a 5min candle, that could mean almost anything and be the result of a laundry list of order flow environments and situations. But apply an inside bar on a 4hr pin frame, and you are talking 4hrs of price action being held in a range for almost half an entire trading session.

That means no matter how many players participated in the market, nobody was able to break the previous price range for an entire 4hrs which tells you a price was pretty suppressed, b very little directional control in the market, c very little participation. That is much more communicative in terms of information than any passing 5mins. Technically, for an inside bar pattern, you would be basing your decision on 8hrs of price action since an inside bar pattern is a 2bar pattern thus 8hrsso there is a lot more information in this then an inside bar pattern on a 5min time frame 10mins of price action.

Furthermore, to get any real significant amount of data with confirmation and continuation bar the order flow and price actionyou need far more 1min, 3min, and 5min candles to make sure the noise is filtered out.

That means more moving parts and more variables to manage. Contrast to the 4hr chart where one candle or two can give you all the information you need to make a trade while filtering out any noise and meaningless price fluctuations. This will give you less confusing information in the beginning, and teach you how to be patient with your trading.

One can trade price action on any time frame and make money. In fact people are making money on almost every time frame available. Just understand you have to increase your price strategy skills and ability to read price action context before trading lower time frames. For other traders it does, so the key is finding what works for you. Also make sure to check out our most recent article on Price Action Trading. I'm Chris CapreFounder of 2ndSkiesForex.

I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page. The 4 hour is hour the only candle that displays this behaviour across platforms. The 1 hour or less candles all appear the same and the daily and up are so big that a couple of hours difference in server time makes little difference.

Good questions access aexcess although what is your real name, no need to hide, we are all friends here. Yes, this is true, which is why we recommend 1st choice — the NY close because it has a pure 5day trading week or 2nd choice, the london open since the london market is the largest and many of them use their pivot points based on the london open. We believe those two will have the largest impact and be most useful since they are the most common times which are used.

In our Price Action Coursewe have actually done quantitative strategies based upon the 4hr hour frames for price action patterns which showed some amazing data. In regards to the mind blowing story, im debating whether I should write an article about it as its not only a big story, but a long one… hmm, thoughts?

Chris, if on your recent journey a Uruguayan border official had informed you that in Uruguay the law states you can trade one timeframe and only one and that you must declare bar in advance of entry,what would your answer be?!!

Chris, plz the story for meaningless price fluxuations? I thought of an excellent way to share the story — am going to do hour via the FREE Price Action Trading webinar I do every Tuesday at 10am EST on fxstreet. I agree with what you have to say. Hi Chris, Thanks for answering the favorite time frame question. All this informations and helps for free! I absolutely agree with you. Lower time frames are a quick and easy way to empty your account.

So much adrenaline and gut spilling and dramatically increases the learning curve exponentially. The lower time frames can be learned but the learning curve is much longer, more steep and also usually a roller coaster ride which the trading process already is which is why I endorse these 4hr time frames for the learning process. After that, its a question of style.

Wish I knew about the beauty of the higher time frames when I first started in forex. My trading only took off after I moved up from lower time frames to 4h and daily, and I remember I got the advice from one of your webinars.

When you speak of New York close, and London open, are you recommending calibrating pivots according to either one of those times?

Is it OK to ignore Sunday activity? I recommend calibrating pivots to the London open if you can, if not, then the NY close. This does not mean the NY open to NY close, it means the 24hr period from NY close to NY close or 5pm EST to 5pm EST. To the trained eye there has actually been plenty of signals on the 4hr charts and the daily as well. We recommend a range between the 1hr, 4hr and daily charts which should give the trader plenty of action across several pairs.

I already did so in the webinar that came after I wrote this post so go ahead and check out my webinars around that day and you will hear the story. It allows me to close the charts and not look at them for several hours. Very glad you wrote about this.

I am glad to hear the move up in time frames has not only improved your trading, but also helped you trade more relaxed and calm which is critical to trading.

And yes, its important to bar like you can trade from the charts while being able to walk away — gives you a sense of freedom and control to do other things and not be married to the charts like Johnny Bench. I find that using large time frames requires large protective stops. How does a person, who may be more consertive in their trade management, find balance between using large stops in a coservative pin To be more clear, how do you use large time frames, large risk and balance thise with a more conservative trading approach?

Gabriel who is one of my top studentshit the nail on the head. Stop size has nothing to do with risk by itself. I can have a pip stop have less risk than a Hello Chris, I am already subscribed to paid price action advisory services. They are mainly training courses and information seems to strategy same like trading 4 hr and daily charts and go to 1 hr rarely.

They also talk about New York close charts and two or three entry methods based on pinbars and inside bars. My thoughts are if patterns like inside bars and pin bars on 4hr and daily charts were enough, then why would banks be spending thousands of hours training their traders when it could be so simple?

The answer comes down to context and reading price action in context — not just a few simple patterns. This is what I teach in my course, how to go beyond some simple patterns to read price action in real time, and trade it. I think have invested more in all training and guidance systems than my trading account and it has caused more confusion.

Hence I have come down to my old proven and tested method of of 5 and 13 ema crossover in direction of 55 ema. I am getting good results and looking to apply it on Indices on daily time frames. Hi, I just read you recommend NY close for 4 hour candles, did you all ever study 4 hour candle strategy on GMT based time charts? I actually recommend strategy types of 4hr candles, NY close is one of them. Thank you always for your great insight. I have really enjoyed your article, and, at the same time, I think that I have gained very meaningful suggestion from pin article for me to deeply rethink my perspective about trading timeframe.

By the way, I want strategy ask one question which has bothered my mind for a long time. That one question relates to the fact that the form of 4HR candles varies so much between different charting software. For hour, I am currently using three charting software which are Intellichart, MT4 of Alpari Japan with live account and MT4 of FXDD with demo account. And, I must add that both of Alpari Japan MT4 and FXDD MT4 use NY session closing time data.

Then, when I compare the 4HR candles of those charting software, the 4HR candles of two MT4s are almost identical. But, the 4HR candles are the completely different things between two MT4s and Intellichart. Actually, there had been a brief period when I had subscribed to Esignal and Pro Real Time.

But, just after subscribing, I instantly ceased to use those charting software. The reason for that is the complete difference of 4HR candle forms between Esignal, Pro Real Time, MT4s and Intellichart. Especially as for the reason of subscribing to Esignal, I had sought the charting software whose price data is the absolute reliable one. But, the difference of the 4HR candle forms I had noticed just after subscribing had really discouraged me. And, I also noticed the slight difference of pin daily candle forms.

So, I had become at the loss of what to believe. I have observed many times that the 4HR timeframe often creates really beautiful trending chart. And, thanks to the great article of yours about higher timeframe trading, I really want to concentrate on the timeframe more than 1HR, especially the 4HR timeframe as my main trading timeframe from now on. I know that you have used Intellichart. That fact made me very happy when I knew about that for the first time.

And, when I searched web for the best charting package, Intellichart was highly regarded. But, the complete difference of 4HR timeframe candle forms has not left my mind. Would you give me any suggestion about how to deal with the problem I have described? A massive question but a good one.

My fxtrek slices the 4hr charts differently by starting 1hr into the london open. Others start at the london open. Both can work which is why I cover this in the course. The key is to find one that works for you and just trade those. This is why we provide a quantitative edge in the course sharing the differences in 4hr start times.

After having read your comment, I feel now that I have missed the truly important thing and have cared too much about the hour which is secondary for a long time. Hmm, I think there is a misunderstanding here. There are certain people who say the ONLY way, or the Pin way to make profitable trades using price action is on the higher time frames. This is not always the case, and so I disagree that the ONLY way, or the BEST way to be profitable is on the higher time frames.

There are many time frames one can trade profitably if one learns the skills. Thank you for your compelling article covering the 4hr charts. It is the best educational posting I have come across! We do not approach price action in such a mechanical manner making trading decisions based on pure patterns only.

We first understand price action context as there is no one answer to your question, and no clear answer without context. For an article about price action context, visit the link below. CAN YOU ABLE TO GIVE LAST 10 YEARS 4HR candle stick in UK OPENING TIME FRAME AND US CLOSING TIME FRAME 4 HOUR CHARTS. But this information you are asking for is for paid course members which you are welcome to join. I am definitely taking notes here about trading the 4hr charts doing set and forget trading. I work all day, so was looking for a way to trade.

Man you are a true market wizard. Keep up the great work. I like trading the 4 hour charts with the 1 hour charts. Am glad you shared this article about trading the 4 hour time frames as I combine this with my price action bar. I hope you remember me. I may be late for commenting pin article so my apologies. The above article really really explains so clear that I can see through the crystal ball ha ha. I notice you mentioned to insert a question here.

Funny I do have a question in mind. When trading on 1HR TF, do you make sure the trend is in the same direction as 4HR TF? I am bar this will blow my mind. I have hour and placed it in my trading book fore reference. NO FINANCIAL ADVICE - The Information on 2ndSkiesForex. The information contained pin or provided from or through this site is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice.

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Trading the 4hr Charts 75 Engagements. Some Advantages of the 4hr Time Frame? Chris Capre Buddhist, Trader and Philanthropist. Want to Learn Price Action Strategies for Trading Forex? Sign Up for our Monthly Newsletter and Get our FREE E-Book. You Might Also Enjoy. Your thoughts on this and of course let us now about thr mind blowing story. Good questions access aexcess although what is your real name, no need to hide, we are all friends hereYes, this is true, which is why we recommend 1st choice — the NY close because it has a pure 5day trading week or 2nd choice, the london open since the london market is the largest and many of them use their pivot points based on the london open.

Hola Mike, I thought of an excellent way to share the story — am going to do it via the FREE Price Action Trading webinar I do every Tuesday at 10am EST on fxstreet.

Come to the webinar to hear the story so see you there. Thanks as always, Chima. Bar Chima, Am glad you are enjoying these articles. See you at the webinar Kind Regards Chris. Hi Chris, thanks for all the information. Hello Nandrani, I recommend calibrating pivots to the London open if you can, if not, then the NY close. This does not mean the NY open to NY close, it means the 24hr period from NY close to NY close or 5pm EST to 5pm EST I ignore sundays for sure hope this helps CC.

Hey Chris, can u plz tell me your story about meaningless price fluctuations that will blow my mind? Hello Mike, I already did so in the webinar that came after I wrote this post so go ahead and check out my webinars around that day strategy you will hear the story.

Hello Desiree, I am glad to hear the move up in time frames has not only improved your trading, but also helped you trade more relaxed and calm which is critical to trading. Thanks for the kind words on the courses. Always good to work with you. Chris, This is the finest explanation I have read about 4 Hour Candle.

Thanks a lot for sharing. Hello FP, Glad you liked it and found it valuable. Hello Chris, I find that using large time frames requires large protective stops. Hello Mike, Gabriel who is one of my top studentshit bar nail on the head.

Kind Regards, Chris Capre. Must be pretty interesting. Hi Chris, I like your way of approaching pin trading and also to the traders. The Example which u compared the psychology of trading is absolutely true and amazing also. Please share the story…. Will it be additionally beneficial to join your course? Hello Girish, I have a feeling I know which services you are referring to.

The answer comes down to context and reading price action in context — not hour a few simple patterns This is what I teach in my course, how to go beyond some simple patterns to read price action in real time, and trade it. Hopefully this gives you some good information to work with. Thank you for your sincere reply. I read with interest your dailt mails but they seem delayed by a day. All the best and good luck trading.

Please tell me the story about meaningless price fluctuations…. Hello Rick, I actually recommend several types of 4hr candles, NY close is one of them. Hello Kenichi, A massive question but a good one. So no reason to be discouraged, just know the differences and trade accordingly.

Thank you very much for the comment in your very busy schedule. Hello Seyed, Hmm, I think there is a misunderstanding here. So there is no inconsistency here. Hello Chris, Thank you for your compelling article covering the 4hr charts. Hello Asr, We do not approach price action in such a mechanical manner making trading decisions based on pure patterns only.

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