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EJ_4H Method

– Use H4 chart.
– Blue candles mean uptrend and red candles mean down trend, green ones (non-colored) means
directionless or range market.
– In most of the time changing red or blue color to green one means changing trend possibility.
– White line is 8SMA and yellow one is 55SMA; 8SMA swings and oscillates around 55SMA, they most of
the time play the role of resistances especially 55SMA that shows the longer term trend.
– When yellow line (55SMA) has a positive slope means the major trend is up and we buy, when
pointing down we go short (sell), the signals for enter long (buy) are:
o Up pointing blue arrow
o Blue candle
o White line has crossed yellow one and pointing up
o Yellow line has positive slope or is going to head up
Until candles are above the white line it means uptrend still has the momentum to go upper, same goes for
down trend, until candles are below the white line it means the downward momentum exists. Any close below
white line means the uptrend is going to over and this is a start for downward move, same goes for uptrend,
any close above white line indicates a potential reversing from downside to upside and moving up. This
happens most of time with green candles and the trend reverse with arrow signals and changing the color of
candles (from green or blue to red or form green or red to blue)
Most of the time after a sharp (strong trend) breakout or breakdown the price will reverse nicely after
reaching top in uptrend or dip in downtrend, this can be recognized by changing slope of white line, changing
color of candle and signal arrow, the close at the other side of the white line is a confirmation.

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