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Know the 4 hour charts first! The 1 hour charts are more aggresive.
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The 1 Hour Entry:Before making the jump to the 1 Hour Entry principles it is important that you have a solid understanding of the 4 hour method and are able to recognize (see) Market Rhythm. If you haven't done so already, review the Market Rhythm page and download the .zip files for Market Rhythm here. *** IMPORTANT *** When there is a certain amount of confidence that price will move in a certain direction due to Market Rhythm and or support and resistance lines, you can refer to the 1 hour charts to enter earlier versus entering on the 4 hour charts. This confidence is something that is obtained over time from knowing your market, recognizing Market Rhythm, and taking action when necessary. Example 1So, what is the reason for entering on the 1 hour chart and why is it important? There are a few things. When price is approaching the 21 EMA and setting up for a trend continuation trade (Tc) on the 4 hour chart you should be thinking in terms of "I'm expecting price to move with the current Market Rhythm because...". Because what? Because price is in the vicinity of the 21 EMA on the 4 hour chart. Because price is at a support or resistance level (this is why trendlines and price channels are important) or a slower moving average. Because there is a news event coming out that could continue the current trend. Because the Hi / Lo range of the 4 hour candle that gave a Tc MACD pattern may be too large and the risk : reward ratio is 'out of bounds'. The 1 hour chart can help narrow that 4 hour candle range. The following GBPUSD 4 hour and 1 hour charts shown here are from 02/12/2007. The GBPUSD mp3 file for the 1 hour entry is the same chart time as well. The 4 hour GPBUSD chart from 02/12/2007: 
Here, you can see the that price was approaching the 21 EMA (blue line)and your 'expecting' price to continue downward. Also, notice the trend and how the Dailiy Rhythm Strength has been at +2 for a while. Price falls again and the 4 hour gives a Tc signal with the MACD. But, the range of that candle is too large, 107 pips, for an entry and the majority of that move has been exhausted. The 1 hour GPBUSD chart from 02/12/2007: 
The vertical line here represents the 2nd one hour candle of the 4 hour candle. Remember, you are looking at the 1 hour chart but you have to be thinking of the 4 hour chart. The 4 hour chart is at the 21 EMA and you are expecting price to return to the downside. Here, the 1 hour candle falls hard and the MACD gives a signal. The range of the 1 hour candle has become a lot more manageable, 41 pips vs. 107, and there ends up being plenty of room left to bank some pips. Easy right? Nope, but it can be. The 4 Hour MACD Forex Strategy is really all you need to trade with. That must be understood and traded successfully first. The 1 hour charts will give you more opportunities to trade but the concepts of Market Rhythm on the 4 hour charts have to become second nature to you. Once you see the rhythm, then using the 1 hour charts for entries on the 4 hour should be the next step. To download Phillip's mp3 files and accompanying charts for 1 hour entry methods click here. Sorry you had to read through all of this first but we wanted to make sure you didn't skip ahead. Right?
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