Forex Eight Hour Chart Challenge

In a recent post I asked if you wanted some tips on trading eight hour charts in Forex. The response was astonishing. The post received over 100 comments from readers wanting to learn eight hour charts.

In this post I am going to set a one month challenge with the goal of making you a more efficent trader.

How I Started Trading Eight Hour Charts

Traditionally mid-range timeframe Forex charts have been limited to four hour and daily. However, in the last few years some brokers have introduced new timeframes to their platforms.

I first found out about eight hour charts in early 2012. One of my advanced course students suggested the timeframe to me. At first I was hesitant about breaking away from four hour and daily time frames. After testing the eight hour time frame for a few weeks I fell in love.

Why Eight Hour Charts?

One of the major benefits is that they save your time. Eight hour charts only need to be checked every 8-12 hours, making it is easy to trade them around a busy schedule.

You may be thinking that the daily charts save even more time, and you would be right. However, daily charts have far fewer trade setups than eight hour charts. Eight hour charts strike a good balance between time saved and quantity of trade setups.

How to Get Eight Hour Charts

The easiest way to get eight hour charts is to visit tradingview.com. Unfortunately many brokers are still using MT4 which does not have eight hour charts. There is an MT4 plugin which allows eight hour charts but it does not work for a lot of people. If you want to give the MT4 plugin a shot check out this recent post.

Simple Trading Challenge

Now that you know a little about eight hour charts and how to use them I want to give you a challenge. The challenge will run for a month, and your goal will be to simplify your trading and to develop some efficiency.

Step One: Choose Four Pairs

Normally I tell new traders to pick a single pair and stick with it. However, this challenge is designed for people with limited trading time. Multiple pairs are required for this challenge to maximize your chances of catching a trade.

I will be trading EUR/USD, GBP/USD, AUD/USD and EUR/JPY.

Step Two: Choose One Time Frame

This part is obvious, you need to choose the eight hour time frame. Create an eight chart for each of the pairs in step one.

Step Three: Choose a Trading Strategy

I recommend you use my simple Forex strategy. I use a combination of support and resistance and candlesticks to trade reversals. Generally, I get two to four setups per week across the four pairs in step one.

If you already have a working strategy, feel free to use it. This challenge is all about making you a more efficient trader. If your strategy works but you miss trades, you can adapt the strategy to fit the parameters of this challenge.

Step Four: Create a Trading Plan

You should already have a trading plan. If you don’t, you are making a major mistake. If you already have a trading plan you may simply need to adapt it to this challenge. If you need help creating a trading plan check out the free Forex trading and money management plan course.

Step Five: Start Trading

Once you have your trading plan it is time to start trading. The challenge is simple. You need to limit yourself to four pairs on the eight hour time frame. You should try to check your charts once every eight hours. If you cannot manage to check your charts that often try to check at least once every twelve hours.

If you see a trade set up, trade it. Feel free to use automatic entries and exits if needed.

I am hoping that this challenge will allow you to trade more efficiently. Checking your charts once every eight hours should allow you to fit trading around a busy schedule.

Eight Hour Chart Tips

Over the next few weeks I will be writing a lot about eight hour chart trading. So keep an eye out for some more tips that will help you in this challenge.

Taking part in this challenge? Leave a comment below and let me know!

285 comments

jordan

April 3, 2013

I never trade 8 hour chart before because I have been trading using
daily charts. I would love to get some insights on trading 8H charts.

MischaT

April 3, 2013

Will definately join you on this one Nick. I miss a lot of signals on 4h these days because of a busy schedule so I hope this works out. =)

Tad Slaff

April 3, 2013

I have been trading 6 hour charts for many of the same reasons you mentioned about 8 hour charts. I like the 6 hour charts because they allow me to structure my day into 4 segments to capture the opening of new bar. I really do think these longer intraday time frames are the way to go if you can’t spend all day in front of a computer.

John

April 3, 2013

Thanks Nick, it has been frustrating watching your videos and not being
able to demo it until now. It will be interesting to adjust to 8hr so
looking forward to it.

DaveDavies

April 3, 2013

Looking forward to this having been using H8 charts for some time. Yes, I did catch the trade on GBPUSD this week

Phoebe Ejimbe

April 3, 2013

Many thanks Nick! I’ll definitely will give it a shot if I can create 8-hour charts from my current broker’s MT4. If not I’ll try with the 4-hour.

Sean C.

April 3, 2013

Have been using the MT4 plugin for 8H charts for a couple of months now and it works great. Look forward to being part of the challenge.

Brandon

April 3, 2013

Nick,

Thanks so much for posting this. I’m in for the challenge.

Richard

April 4, 2013

I am in Nick, 8hr is great for me as I’m a student and don’t have as much time to put into trading as I would like.

james

April 4, 2013

Im in Nick,Ive never traded 8 hr charts but would love to start.

ken

April 4, 2013

up for the challenge

Jiayee

April 4, 2013

Hi Nick. What is the minimum pips for me to set my stop loss in 8hr chart? Thanks

Nick

April 4, 2013

That is up to your own money management rules. Personally I go as low as 25 pips on AUD/USD.

Roger

April 4, 2013

I would love to take part in this challenge.

sucessodigital

April 4, 2013

I’m definitely in.

Néstor

April 4, 2013

Hi Nick, I work with MT5 and my 8 hour candle closes at 6:00 GMT.
I can change it as close to my candle is like yours?
thanks

val

April 4, 2013

Hi Nick , this is an interesting challenge , I feel its going to be worth every minute spent on it. count me in.

noemi

April 4, 2013

I started trading with the 8 hours under your advice. do you think is more reliable than 4 hours? I’ve never trade GU may you post the support and reasistence area to check them with my own?
Thank you very much for your help your explanations are always clear and very useful

alan

April 4, 2013

yes please

Jesse

April 4, 2013

I’m in.

Serge

April 4, 2013

I am in!

louis Diame

April 4, 2013

im ready!

Mitja Zunko

April 5, 2013

i’m in…

Nagaraj

April 5, 2013

Yes I love challenges

Krunal

April 5, 2013

I’m in!

jugi

April 5, 2013

I´m in too!

alan

April 5, 2013

blue not grey … in please

John Morrison

April 7, 2013

Sean, have you used any EA’s with this plugin, with the charts in “offline” mode?

Smith

April 7, 2013

I am in

Jiayee

April 8, 2013

Thanks for sharing, Nick =)

joe

April 9, 2013

Hi Nick,a one more great idea of yours

the only problem for me that

if EUR/JPY (and GBP/JPY, for that matter)

is in MT4, neither of the two can be found in MT5

Could i be wrong?
thanks

Gerardo

April 10, 2013

I am starting to use it !!! I am in

Darren

October 6, 2015

With the 8 hour trading does it start at 0:00 NY time? So 0:00 then 8:00 then 16:00 then back to 0:00?

Leo Mylan

November 2, 2015

PLEASE KEEP ME INFORM ABOUT 8 HOUR CHARTS OR ORTHER,

Mike

March 25, 2016

I would like to see and learn more about trading the 8 hr charts. Right now I trade off of the 4 hr charts and I trade currency futures. They offer the same price patterns except on the dailies bc they are closed for an hour and they do not roll every day ( every qrt).