January 6, 2010

4 Hour Forex Trading System - My Exact Set-Up

The only drawback to running a forex blog is that you are constantly being bombarded with lots of questions, and some of the most common questions I receive relate to my 4 hour trading system. So in this first post of 2010 I thought I would share with you my exact trading set-up.

You can find out how I trade this 4 hour system by subscribing to my newsletter if you haven't already done so (simply fill in the form to the right) but I just want to show you what my everyday chart looks like.

I use very few technical indicators, and they are basically as follows:

- EMA (5)
- EMA (20)
- EMA (50)
- EMA (200)
- Supertrend (3,10)
- Smoothed Repulse (5)

The 50 and 200 period EMAs are just there for guidance really, both for determining the long-term trend and for highlighting areas of support and resistance in some instances, and the Supertrend is just used on the daily chart to tell me which way I should be trading.

My typical 4 hour chart looks like the one below, although on this time frame I'm only really interested in the 5 and 20 period EMAs and the Smoothed Repulse indicator. (The other indicators are only on there because I often toggle between the 4 hour and the daily chart).

The main signal comes when the EMAs cross over, and the best signals occur when this event coincides with the Smoothed Repulse crossing through 0 in the same direction. This is exactly what happened yesterday on the GBP/USD pair, as you can see from the chart below.

The Smoothed Repulse indicator isn't an essential aspect of this system. You can simply trade the EMA crossovers if you so wish. However it does help you pinpoint the very best set-ups.

Anyway I hope this answers any questions you may have, and I wish you a Happy New Year.

GBP_USD Spot06-Jan-09.png



Permalink • Print • Comment

12 Comments on 4 Hour Forex Trading System - My Exact Set-Up »

January 6, 2010

Leah Tsang @ 4:48 pm:

Dear James,

Thank you so much for sharing. Your information has truly helped.

I wish you good health and profitable tradings in 2010.


January 7, 2010

Costa @ 12:02 am:

Thank you for the info. Wish you all the very best for 2010
& always.

Louis Ferreira @ 10:32 am:

Dear James,
Thank you for sharing your hard earned ways of trading succesfully. I will be trying it and will let you know if I LIKE OR NOT, BUT IT MAKES SENSE

Jose @ 12:03 pm:

Thanks for sharing your sistem. Where can I do the "Smoothed Repulse Indicator" download?
A great 2010 for you and your family
Best regards,

aldo @ 4:27 pm:

Thank You for sharing it with us and all the best for the New Year

george judd rowley @ 7:50 pm:

very good James thanks a lot have a great year. Judd.

January 8, 2010

Mat @ 7:04 am:


Is there a Smoothed Repulse indicator for metatrader? I have been looking around but there doesn't seem to be.

Thanks, Mat

January 12, 2010

James Woolley @ 9:54 am:

Matt, I've been searching online as well and unfortunately it looks like it's only available via ProRealTime.

March 28, 2011

Eddie @ 11:37 am:

Hi, thanks for everything you have share.
I need to ask that your setup for your EMAs is EMA 5 OPEN or CLOSE ?

James Woolley @ 2:59 pm:


March 31, 2011

Eddie @ 9:36 am:

Thanks James.

October 3, 2011

thierry @ 11:47 am:


Can someone get or post the formula to determine the Smoothed Repulse indicator ?

I could attempt to develop a MT4 indicator….

waiting for answer…

Leave a Comment