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Effective Trading with Key 4-Hour Candles

Apr 24, 2025

Trading with a Single Candle

Overview

  • Focus on a single 4-Hour candle as a key indicator for trading decisions.
  • Simplifies trading by avoiding overly complex chart setups.
  • Provides a framework for knowing when to monitor charts and anticipate market movements.

Key Candles and Timeframes

Forex Trading

  • 1:00 a.m. 4-Hour Candle

    • Analyze by 3:00 a.m. (New York Time).
    • Identify market range from 1:00 a.m. to 3:00 a.m.
    • Determine liquidity pools:
      • Sell-side liquidity below the low.
      • Buy-side liquidity above the high.
    • At 3:00 a.m., look for market to hunt liquidity and change delivery.
  • 9:00 a.m. 4-Hour Candle (New York Session)

    • Use the same framework as 1:00 a.m.
    • Identify a dealing range prior to 9:30 a.m.
    • Look for price to hunt liquidity and change delivery by 9:30 a.m.
    • Use context to confirm market direction (bullish or bearish).

Futures Trading

  • 2:00 a.m. 4-Hour Candle (London Session)

    • Focus on 3:00 a.m. for liquidity hunting and delivery change.
    • Establish a dealing range with swing highs and lows.
  • 6:00 a.m. 4-Hour Candle (New York Session)

    • Identify dealing range and watch for liquidity hunt by 9:30 a.m.
    • Use swing lows and highs to establish range.

Trading Strategy

  • Identify dealing ranges with a swing low and high.
  • Look for liquidity hunting at specific time windows (3:00 a.m., 9:30 a.m.).
  • Wait for a change in delivery to confirm trade setups:
    • If bullish, wait for price to trade lower and close above down-close candles.
    • If bearish, wait for price to trade higher and close below up-close candles.
  • Trust the setup once delivery state changes.

Practical Application

  • Choose the session and candle that fits your trading style (New York or London sessions).
  • Implement blueprint model on selected markets and timeframes.
  • Understand and adapt framework to individual trading needs and market conditions.

Conclusion

  • Focused and simplified approach to trading using specific 4-Hour candles.
  • Combining time-specific liquidity hunting and delivery changes enhances trading precision.
  • Encouraged to find personal fit within the framework for trading success.