Vertical line 7 on the 4 hour chart is from 9/4/2008 at 04:00. Vertical line 7 on the 1 hour chart is from the 04:00 candle.

A non-news event candle. The 4 hour rhythm started flowing well to the downside. Price was on the verge of closing above the 21 but failed to do so. The 4hr range of that candle was about 100 pips. The -DM/+DM cross for the candle on the 1 hour was about half of that range.

Vertical line 8 on the 4 hour chart is from 9/7/2008 at 20:00. Vertical line 8 on the 1 hour chart is from the 20:00 candle.

An interesting situation here. When the signal occured the -DM was already above the +DM on the 1 hour so the cross had already happened and the 4 hour did close above the 21. I have price approaching two channel resistance lines for a possible upside barrier. But, the market gapped up and gaps like to be filled. Additionally, this was the first candle (on the 4 hour) for the Sunday evening open and that can be a thin time to trade. Price did resume the downtrend to fill the gap sometime later with the -DM/+DM cross to resume the downtrend. This entry would have taken some additional thought given all of the variables with the set-up. Nobody said this was easy.

Vertical line 9 on the 4 hour chart is from 9/12/2008 at 04:00. Vertical line 9 on the 1 hour chart is from the 04:00 candle.

The 4 hour closes above the 21 with the next candle being a doji showing us market indecision here. But, the MACD is still in the green zone and the 1 hour trend looks very strong with no -DM/+DM cross. No signal to enter short here at all. Time to go fishiing.

Easy right? Nope, but it can be. The Market Rhythm 4 hour 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.

You see that there is no mention here of RBs for a CT trade. These are trades that go against the main trend. Concentrating on the high probability trades should increase your winning percentage given that you have the discipline to follow the rules. Also, this is the current trend (September 2008) for the EURUSD. The same principles apply for an uptrend except for the the +DM should cross above the -DM on the 1 hour for a possible early entry. Don't use the 1 hour charts to specifcally trade from. You will end up overtrading. The heart of this strategy is on the 4 hour charts. Live there for a while before narrowing things down to the 1 hour timeframe. Be aware of the news coming out and always follow the 4 hour trend.