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What are the best strategies for trading on an hourly timeframe?

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The best strategies for trading on an hourly timeframe take advantage of the supports and resistances. When trading on a 1-hour chart, it is often best to enter the market using support and resistance with a price action pattern.

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Supports and Resistances

The support line shows where buyers may end up if the price drops significantly; the resistance line depicts what occurs when sellers take control of pricing. The most efficient way to discover a support and resistance level in trading techniques is by utilizing previous price fluctuations.

Look for three highs or lows in the same general direction as each other to identify a support and resistance level. The easiest method is to connect these points on either side of where prices are presently trading.

take advantage of the supports and resistances

Look for price action to break through the levels of support and resistance once we’ve established them.
Based on this false breakout, we can try a trade mean reversal if the price breaks out of its support and then corrects.
After the false breakout, we will place an order. We set a stoploss below the support and a take profit near the resistance above.

false breakout in hour chart

When the price breaks support and bounces off, we can open trade in the same direction as the break. We’ll set a stop loss above our support with an option that allows us to trail trailing stops once they’ve been triggered.

Conclusion

The best strategies for trading on an hourly timeframe take advantage of the supports and resistances. When trading on a 1-hour chart, it is often best to enter the market using support and resistance with a price action pattern.

Look for price action to break through the levels of support and resistance once we’ve established them. Based on this false breakout, we can try a trade mean reversal if the price breaks out of its support and then corrects.

After the false breakout, we will place an order. We set a stoploss below the support and a take profit near the resistance above.