The Simplest 1-Hour Chart Forex Strategy
I want you to stop seeking permission and approval from others before trading in Forex. Please use your mind logically to formulate decisions, act on those decisions, and then reap the benefits of your actions on those decisions. I’m going to do some motivation and some inspiration. And some life lessons to help you get on a better path in your Forex trading life.
When discussing the best time frame to trade, my favorite time frame is the 1-hour charts. I used This time frame to make pips with the zip code. I designed This trading strategy about six or seven years ago, and I have been trading it every day since. We have made money in six of the last seven weeks and 11 of the previous 12 months and have had solid results if I do say so myself.
So, how does the simplest 1-hour chart Forex strategy work?
It’s elementary: you sell when the short and medium-term trends are weak, and you buy when the short and medium-term trends are strong. Now, how do we identify the short and medium-term trends? One way you can do this is multiple time frame analysis.
The best squeeze trades are those we buy when the currency pair is above all the major moving averages and sell when it is below them.
What would this look like on a Forex chart?
The Swiss Dollar chart has four moving averages: the 2051 one, the 100, and the 200 simple moving average. These are my favorite moving averages to use. You can see that the Swiss dollar is trading above all of these moving averages on the daily chart, which is a 4-hour chart, and there is a 1-hour chart, and this is a classic example of the Swiss dollar being in a strong uptrend in the short to medium term.
So when you have this type of setup, we also have a clearing moving average, which means there is no significant resistance above or below multiple time frames on Friday. We had an excellent trade in the Euro and dollar in the New York open session. We did not get the white candle that happened the day before, and this will be a pure compact cell signal.
But your dollar was trading in the cell zone, and at that time, the Euro was trading for less than one hour, as you can see in the daily and four-hour charts. The Euro has been selling off since the ECB monetary policy announcement: stocks fell sharply, US bond yields rose, and all… This strengthened the situation.
Is this a short strategy for trading Forex on the Euro in the United States?
I shorted EUR/JPY instead of EUR/USD because I felt that EUR/JPY would be more sensitive to risk, and it was down 80 pips, but that didn’t have an excellent moving average like the EUR. It was the dollar, and regardless, both trades worked out well at the end of the day.
In Tuesday’s Asia open trading session, we bought AUD/NZD. The Australian dollar was trading above the indicator line, meaning the short-term trend was up, and the background was green, meaning the long-term trend was also positive.
These trading views postal charts are available to all Forex market members, making it very easy to see the trend and trades at a glance. However, the Australian dollar was above all the major moving averages in this 1-4 hour average and this daily chart, so you can also use these to identify the trend in the short and medium term.
We went well ahead of the Reserve Bank of Australia’s monetary policy announcements, which was a bet that they would raise interest rates. They certainly did a lot more than the market expected, using the principle of only buying when short and long-term trends are positive, and more specifically, using a trading strategy Forex for an hour.
Features of the 1-hour Forex chart strategy
Our goal each week is 100 pips in weekly Forex trading, and we have easily achieved this goal 6 out of 11 in seven weeks. When we lose, we lose less because the zip comes back strong while trading, and using the zip makes trading easier. They even helped us get this trade: Beautiful shorts in gold.
You can also see that multiple time frame analyses can be performed using moving averages and can be used to help you determine your positioning in trades.
This is only supported by short and medium-term trends.
How to Deploy a 1-Hour Forex Trading Strategy?
Okay, so we made 145 pips in our compression trays this week, and we started Monday a little soft. If we return to Monday, we will have a bit of soft trading. Let’s see if we can get there Tuesday or Monday. Okay, we started Sunday night.
The Australian dollar hit the target, and we exited the EUR and USD; I was very bullish on the ECB $0.00 entry, but that trade didn’t work out until the end of the week, but we still hit the dollar profit target that we held during the Forex Asia trading session.
