In a recent post I asked if you wanted some tips on trading eight hour charts in Forex. The response was astonishing. The post received over comments from readers wanting to learn eight hour charts. In this post I am going to set a one month challenge with the goal of making you a more efficent trader. Traditionally mid-range timeframe Forex charts have been limited to four hour and daily.
However, in the last few years some brokers have introduced new timeframes to their platforms. I first found out about eight hour charts in early One of my advanced course students suggested the timeframe to me. At first I was hesitant about breaking away from four hour and daily time frames. After testing the eight hour time frame for a few weeks I fell in love. One of the major benefits is that they save your time.
Eight hour charts only need to be checked every hours, making it is easy to trade them around a busy schedule. You may be thinking that the daily charts save even more time, and you would be right. However, daily charts have far fewer trade setups than eight hour charts. Eight hour charts strike a good balance between time saved and quantity of trade setups. The easiest way to get eight hour charts is to visit tradingview.
Unfortunately many brokers are still using MT4 which does not have eight hour charts. There is an MT4 plugin which allows eight hour charts but it does not work for a lot of people. If you want to give the MT4 plugin a shot check out this recent post. Now that you know a little about eight hour charts and how to use them I want to give you a challenge.
The challenge will run for a month, and your goal will be to simplify your trading and to develop some efficiency. Trade Four Pairs Efficiently. Normally I tell new traders to pick a single pair and stick with it. However, this challenge is designed for people with limited trading time. Multiple pairs are required for this challenge to maximize your chances of catching a trade.
This part is obvious, you need to choose the eight hour time frame. Create an eight chart for each of the pairs in step one. I recommend you use my simple Forex strategy. I use a combination of support and resistance and candlesticks to trade reversals. Generally, I get two to four setups per week across the four pairs in step one. If you already have a working strategy, feel free to use it.
This challenge is all about making you a more efficient trader. If your strategy works but you miss trades, you can adapt the strategy to fit the parameters of this challenge. You should already have a trading plan. If you already have a trading plan you may simply need to adapt it to this challenge. If you need help creating a trading plan check out the free Forex trading and money management plan course.
Once you have your trading plan it is time to start trading. The challenge is simple. You need to limit yourself to four pairs on the eight hour time frame. You should try to check your charts once every eight hours.
If you cannot manage to check your charts that often try to check at least once every twelve hours. I am hoping that this challenge will allow you to trade more efficiently.
Checking your charts once every eight hours should allow you to fit trading around a busy schedule. Over the next few weeks I will be writing a lot about eight hour chart trading. So keep an eye out for some more tips that will help you in this challenge. Taking part in this challenge? Leave a comment below and let me know! Click here to cancel reply. Email will not be published required.
I never trade 8 hour chart before because I have been trading using daily charts. I would love to get some insights on trading 8H charts. Will definately join you on this one Nick. I miss a lot of signals on 4h these days because of a busy schedule so I hope this works out.
I have been trading 6 hour charts for many of the same reasons you mentioned about 8 hour charts. I like the 6 hour charts because they allow me to structure my day into 4 segments to capture the opening of new bar. Thanks Nick, it has been frustrating watching your videos and not being able to demo it until now. It will be interesting to adjust to 8hr so looking forward to it.
Looking forward to this having been using H8 charts for some time. Have been using the MT4 plugin for 8H charts for a couple of months now and it works great. Look forward to being part of the challenge. Hi Nick, I work with MT5 and my 8 hour candle closes at 6: I can change it as close to my candle is like yours?
Hi Nick , this is an interesting challenge , I feel its going to be worth every minute spent on it. I started trading with the 8 hours under your advice. Thank you very much for your help your explanations are always clear and very useful. With the 8 hour trading does it start at 0: I would like to see and learn more about trading the 8 hr charts. Right now I trade off of the 4 hr charts and I trade currency futures.
They offer the same price patterns except on the dailies bc they are closed for an hour and they do not roll every day every qrt. Why Eight Hour Charts? Simple Trading Challenge Now that you know a little about eight hour charts and how to use them I want to give you a challenge.
Choose One Time Frame This part is obvious, you need to choose the eight hour time frame. Choose a Trading Strategy I recommend you use my simple Forex strategy. Create a Trading Plan You should already have a trading plan. Start Trading Once you have your trading plan it is time to start trading.
If you see a trade set up, trade it. Feel free to use automatic entries and exits if needed. Eight Hour Chart Tips Over the next few weeks I will be writing a lot about eight hour chart trading. April 3, at 6: April 3, at 7: April 3, at 8: April 3, at 9: April 3, at April 7, at 5: April 4, at April 4, at 1: April 4, at 2: April 8, at 3: April 4, at 4: April 4, at 5: April 4, at 9: April 5, at 7: April 5, at 8: April 5, at 9: April 5, at April 7, at 8: April 9, at 7: April 10, at 3: October 6, at 9:More...