In short periods of time (within a day) volatility is a lot more unpredictable and because of this, support and resistance levels in short term charts are unreliable to use. If you try and trade off hourly charts or even shorter time frames, then you are bound to lose sooner, rather than later.
If your forex trading strategies rely on this method it necessitates having a reasonably tight stop loss where you would be looking to get in and out of trades several times in a day. Whats a tight stop loss ? twenty, thirty, fifty pips maybe ?
The problem is what happens if there is an unexpected event that has nothing to do with your hourly charts or technicals on the given day.
What happens if there is a catastrophe such as 7/7 or there is an unexpectedly bad piece of economic data that comes out? If the currency pair you are following moves one big figure, you will get stopped out of your nice tight 30 or 50 pips stop loss– your forex trading is totally out of your control.
Forex Trading Strategies Trends
Get a simple long term Forex trading strategy where you are not affected by what happens on one given day and forget trying to predict short term trends- Forex markets are a market of probabilities not certainties.
Trading long term forex trends makes big profits; forget about tradingthe short term where unpredictable or unforeseen events will always mean that the odds are never on your side.