Market Rhythm 4 Hour Forex Method

Current Rhythm:

Current rhythm is based on Friday's close and may be used as a guide for the week ahead. Charts will be updated over the weekend as time permits. Remember, if the fish are biting... This is by no means a stand alone signal to either be long or short a given market nor is it to be used as a signal to enter a trade. Please check the economic news calendar for the week ahead as these releases can affect the markets and be cautious of entries or signals around these event times.

It is always a good idea to know what the trend in the longer term time frame is. In this case, the daily Rhythm Strength for the last five days ending on Friday will be given along with the Friday 4 hour chart. The Daily Rhythm Strength is based on the same moving averages that are used with the 4 hour charts. The purpose of the Rhythm Strength is to help you get in touch with the market and get a feel for how strong a given trend is. For instance, if the Daily Rhythm Strength has been trending up and closing above the 8 EMA (+2) for a number of days, this should alert you that pullbacks to the 21 EMA area on the 4hr charts may be setting up for trend continuation trades and to monitor rounded top formations (counter trend trades) closely. These charts and Rhythm Strength values are, of course, after the fact. The take home message here is to be able to look at a chart at any given time to easily determine how strong the current trend is.

The dashed vetical line on all charts is the Sunday open.

Charts were updated on 12/13/2009.

For an explanation of the colored bar Gap indicator visit the Plan 415 link.

EUR-USD

Daily Rhythm Strength:

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