Best 4 hour forex trading system

Today I will create the four hour forex trading system. My goal is to keep it as simple as possible.

I used to trade with the one directional grid trading on the daily chart. Now I will try to use it on the 4 hour chart.

First of all, I will build a forex trading plan and a forex trading checklist.

A lot of beginners think it's a waste of time. But professional traders believe it can allow you to trade with less emotion and stress. It is especially important that you will have a framework to measure the trading performance.

Second, I will decide to trade the major pairs like USDJPY

Third, I have to use only two forex indicators, the Relative Strength Index and the average directional index.

Fourth, don't forget to check out the forex trading daily chart.

USDJPY forex trading daily chart

From the USDJPY daily chart, we can see the Average Directional Index is below 25. So USDJPY is in a sideways market on the daily chart. 

Now, I will find the support and resistance levels on the USDJPY 4-hour chart. And then I will use the bidirectional grid trading system.

the bidirectional grid trading system

• My grid spacing is 47 pips
• My grid lot size is 0.02 lots
• My take profit is 47 pips and can't set stop loss order.
• I place buy limit orders near support lines 
• I place sell limit orders near resistance
• Every day I will set new forex limit orders
• When the forex market is trending, I will use a buy-and-hold strategy.

Fifth, I won't start my own forex trading business directly. I will demo trade until I develop a solid, profitable system. 

1. I am going to open a demo account and practice the best 4 hour forex trading strategy.
2. I will keep a forex trading journal. I think it can measure and track my trading performance.

At last, this is my best 4 hour forex trading system. Can you give me some suggestions?

Next I will develop more forex day trading strategies.

Forex trading sites

More and more many FX traders through forex trading sites, study currency trading knowledge.

Here are the top 5 forex trading sites that you should know about to supplement your Forex trading knowledge.

1. forexlive.com
2. fxstreet.com
3. trade2win.com
4. elitetrader.com
5. mql5.com

top 5 forex trading sites

Learn foreign exchange on the forex trading sites is not easy. Now I am trying to give you some useful forex trading secrets. 

First of all, I believe every professional forex trader is a self taught trader. They will keep learning and improve their forex trading profits continuously.

Second, besides forex trading sites, I have continued to read the top currency trading books. For example, currency trading for dummies

Third, I have built the currency trading plan and keep a forex trading journal excel. 

Fourth, now a lot of forex traders take demo forex trading more seriously! They think there is no better way to learn than a hands-on experience.

Therefore, I would like to open a demo account and test the 4 hour forex trading strategy. 

And remember, successful currency trading systems must be learned, and learned again and again, there is no end to it. 

There are following 5 best websites for demo forex trading:

1. IG.com
2. oanda.com
3. alpari.com
4. Interactivebrokers.com
5. fxcm.com

Fifth, I will write a forex trading checklist. I believe it is one of the important forex trading tools.

Sixth, once I have the currency trading basics down, I can start my forex trading career.

More reading: stockcats blog

4 hour forex trading strategy

I am often trying to use the lazy grid trading system on the cTrader trading platform. Today I will create a four hour forex trading strategy.

First, many beginners are using too many forex trading indicators. They are going to find the perfect forex trading strategy. 

In fact, there is no forex trading secrets. The only thing you can do is to keep it simple stupid. So I have to use only two forex indicators, a 20-day moving average and the Relative Strength Index.

Second, I will decide to trade the major pairs like AUDUSD or USDJPY

Third, I am going to use a trend line to identify the overall trend on the 4 hour chart. For instance, here is a 4 hour chart of USDCAD. It is showing a nice uptrend on the 4-hour chart.

USDCAD is showing a nice uptrend on the 4 hour chart

Fourth, I will use the Relative Strength Index to decide entry and exit points.

1. If the USDCAD pair still tends to continue declining, but the RSI is making higher lows, then I have bullish divergence.
2. If USDCAD prices continue to rise, but the RSI is a lower high, then I have Bearish Divergence

Use RSI to find entry and exit points on the 4 hour chart

Fifth, sometimes I will use the forex grid trading system. It is a multiple entry strategy.

Sixth, I would check the daily chart. If it is in an uptrend, I will use the 4 hour forex trading strategy.

USDCAD is experiencing an uptrend on the daily chart

Seventh, in the end, I'd like to remind you that every professional trader write a forex trading plan, keep a forex trading journal.

At last, even if you are a forex day trader, you should learn 4 hour forex trading system

This is my 4 hour forex trading strategy. I want you to learn by reading my forex trading articles.

More reading: How to Trade RSI Divergence

Learn forex trading

Many beginners must learn forex trading basics. Because they even don't know how to write a forex trading plan checklist, forex trading diary excel and develop a forex trading system.

Here are my favorite forex trading tips.

First of all, I have read a lot of books on forex trading. For instance,

1. Currency trading for dummies
2. Trading Systems and Methods + Website (5th edition) Wiley Trading by Perry J. Kaufman
3. The Daily Trading Coach - 101 Lessons for becoming your own Trading Psychologist by Brett Steenbarger
4. Market Wizards, Updated: Interviews With Top Traders by Jack D. Schwager
5. Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market by  Greg Michalowski 
6. Reminiscences of a Stock Operator by Edwin Lefèvre
7. How to trade in stocks by Jesse Livermore

So you have to read the best foreign exchange books too. Through the books, you will learn profitable foreign currency trading systems and successful forex trading secrets.

Second, you can also learn forex trading with BabyPips. It is one of the best forex trading sites.

Third, you should learn to make a forex trading business plan and a checklist before trading forex. There are the following advantages:

• It can define the real profit targets for a successful trader
• It can define the currency trading strategy before enters into a trade. For instance, grid trading strategy, 4 hour forex trading system or day trading system.
• It can define the entry and exit points
• It can define the money management rules.

Fourth, you have to learn to trade forex with a demo account. It can help you develop a solid, profitable system.

A lot of professional traders take demo forex trading more seriously! They think there is no better way to learn than a hands-on experience.

Fifth, you must learn to write a currency trading journal spreadsheet. It can track, measure and improve my trading performance, especially help me build the disciplines.

At last, let's repeat - trading is a business and run it on business principles.

Keep in mind that the first step is to build a lifelong habit of learning.

Learn forex trading

Forex trading basics

Now I am looking to discuss and share any forex trading basics. 

When trading, attitude is king.


This might sound unimportant to beginners, but I believe it is the important basics of forex trading.

Forex beginners were wrong from the very beginning. They only want to earn cash in the nest hour! But, professional traders treat the forex trading as a business.

Before you start to trade forex, you should read the best forex trading tips online. For example, these top 4 basic tips everyone should know. They can help you make smarter and trade better!

First, you must write a forex trading business plan.

Second, you must keep a forex trading diary. It can help you measure, track and improve your trading performance.

The first two tips are the basic ingredients of trading discipline.
Third, you must demo trade until you develop a solid, profitable forex trading system. 

Next, open your eyes wide and I will expose my forex trading secrets - one direction grid trading 

I will draw a trend line to identify the main trend on the daily chart. For example, on the daily chart of the GBPUSD, it would look like an uptrend.

grid trading on GBPUSD 4 hour chart

1. I trade GBPUSD on the 4 hour chart
2. My grid spacing is 47 pips
3. My grid lot size is 0.01 lots
4. My take profit is 47 pips and can't set stop loss order.
5. I place buy limit orders near support lines 
6. I place sell limit orders near resistance
7. Every day I will set new forex limit orders
8. When the forex market is trending, I will use a buy-and-hold strategy.

Will it be good enough? No, you have to develop more basic forex trading systems on the MetaTrader 4 platform. For instance, the forex day trading strategy, forex RSI trading systems or the 4 hour forex trading strategy.

Once again, you should develop as many currency trading strategies as possible.

Fourth, there are two main ways to learn basic currency trading.

• learn how to trade forex with Babypips. It offers free online forex trading courses.
• read the best forex trading books to make big profits. For example, Bird Watching In Lion Country 

At last, let's review the basics of forex trading.

• Make a forex trading plan
• Keep a forex trading journal
• Develop a forex trading system.

Now You have the forex trading basics, the rest is up to your hard work and execution.

Currency trading for dummies

“Currency trading for dummies” is a good book for Forex trading beginners. If you want to learn to trade forex, this is the right book to start with. Today, I think I should write some thoughts about it.

First, I often read a lot of forex trading books, but I never do reading study notes. So, from today, I will write a currency trading guide for dummies. I think it's the best way to learn currency trading.

Second, why 90% of currency traders lose money? Because they only try to find a easy way to make extra money fast. 

In fact, there is no forex trading secret in the world. Success comes from hard work and execution.

Third, I am going to write a currency trading plan.

• It can define the real goals for a currency trader
• It can define your money management rules
• It can define your currency trading strategy before you enter into a trade.
• It can define the forex trading entry and exit points

Fourth, it's a great pity that many beginners never start with a free demo account. 

So, I have to open a forex trading demo account and develop a solid, profitable forex trading systems.

Fifth, here are my successful forex trading strategies.

1. Forex grid trading system
2. One direction grid trading
3. Bidirectional grid trading
4. 4 hour forex trading system
5. 15 minute scalping strategy
6. Forex day trading strategy

Sixth, I must keep and maintain a forex trading diary. It can measure, track and stay focused on improving my forex trading performance.

Seventh, a lot of professional traders always put the extra into ordinary. They treat forex trading as a business.

In a word, how to become a successful forex trader? 

“Currency trading for dummies” would be a good starting book to read. By the way, I think true success is being superior to your former self.

Currency trading for dummies

4 hour forex trading system

I am often trying to use the grid trading system on the MetaTrader 4 platform. Today I will create a four hour forex trading system.

First of all, I will build a forex trading plan and a forex trading checklist. It is a faster way to find trading opportunities.

• 4 hour trading indicators: the Relative strength indicator, the Average directional index, 
• Forex trading sessions: any
• Preferred Currency pairs: majors. For example, EURUSD, AUDUSD, USDJPY

Second, every professional traders buy in an uptrend and sell in a downtrend. So I would like to identify the strongest trends on a daily chart.

• Use the 20-Period Moving Average to identify the main trend on the daily chart.

Third, if there is a downtrend, I will use the Relative Strength Indicator to discover the overbought conditions on the four hour chart.

4 hour forex trading system

Fourth, when the RSI breaks the trend line, I should exit the trade.

Finally, if you have had enough of the day trading system and the scalping trading system, you would try to use the four hour forex trading system.

Forex trading platforms for beginners

As a beginner, you must be looking for the best forex trading platforms. Today we'll take a look at which platform suits your trading style.

First of all, most forex brokers have Metatrader 4 platform. For example, Oanda, FXCM, XM and Forex. MT4 is simply used by a lot of forex traders.

Second, some ECN Forex brokers provide cTrader platform. For example, FxPro, ICmarkets. The cTrader ECN platform boasts the tightest spreads.

Third, Interactive Brokers offers Trader Workstation (TWS). I think it suits the professional traders best.

Fourth, a lot of forex trading brokers have Android and iPhone mobile platforms. Therefore, you can study the latest trends on the go.

At last, many forex brokers offer the web-based platform. It doesn't need to download forex trading software.

6 Crucial Things to Consider When Choosing a Forex Broker


There are so many foreign exchange trade platforms and brokers all over the world. For beginners, it's hard to choose a best foreign exchange broker. Here are some key ideas:

First, if you only have $1000, you can start forex trading with Oanda, XM, FXCM, Forex, Alpari or ICmarkets.

• They are the top forex brokers and offer the best forex trading platforms for beginners
• You should open a demo account and test the forex trading systems.
• You should try to avoid large losses.
• After demo trading, you can open a live account with $1000.

Second, if you are going to make a living from forex trading, you can open an account with Interactive Brokers or IG.

• They have the best currency trading platforms for a professional forex trader. 

Third, you can find the forex trading Broker Discussion Forum on Forex Factory. 

Fourth, it is very important to select a regulated forex broker.

Fifth, you should choose a forex broker with low spreads. 

Sixth, ECN forex brokers will charge clients a fixed commission per trade.

Finally, I would like to give you some useful suggestions.

• Trading is a business and run it on business principles. So you have to use a small percentage of a live account. For example, 30%-40%. 
• A lot of experienced traders set the yearly goal about 13%
• You have to write a forex trading plan and maintain a forex trading journal.