7 Reasons to Trade Four Hour Charts

In my travels to Poland and Estonia, there is one thing that was abundantly clear.  To get the full experience at a location, I could not be sitting in front of a screen trading for 6 hours a day.

This got me thinking about how it would be great to also have some 4 hour chart strategies that would still have excellent risk reward ratios, but would be trades that I would only have to check once or twice a day.  In addition, Metatrader 4 alerts could also be a big help in detaching me from the computer screen.

Although trades based off the 4 hour charts would probably have larger stops, the rewards could be as follows:

1. Larger profit potential.
2. Trade entry time is not so critical.  I would not have to get into a trade right away, there would be more room for error.
3. Trading a longer time frame would give me more time to do other things I love to do.
4. Backtesting is easier because there would be fewer setups per time period.
5. Since I could test more pairs, I could also trade more pairs, providing more opportunities.
6. Once I master a profitable strategy, I could teach it to people with day jobs.
7. It would allow me to practice patience and not trading for the sake of trading.

My only apprehension is that I have been known to get antsy in the past when trading a four hour strategy.   Anyway, those were just some thoughts that I had on my trip.

I will probably hold off for now, but a four hour trading strategy or two can definitely have a place in a trader's arsenal.

 

SEE ALSO: Learn the RSI Divergence trading strategy that works

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