When the H4 MACD system fails?

H4 MACD works fine only at certain times, on special types of markets. For example, after the EUR/USD rally that finished at Feb 15, the H4 does not longer reflect the price movement and generates a lot of false signals. Another good example fro stale market is EUR/JPY in the beginning of April, 2007. In this case you have to wait or switch to H1-M30  charts. Wide range trading Look at the chart candles. If there are strong up and down swings of 50 pips or more and they are separated with 3-10 short candles (spinning tops or Dojis), you may rely on round top/bottom signals in four-hour chart. Read «What type of market I am in?» for details.
Narrow range trading If among H4 candles are many spinning tops, dojis and other signs of uncertainty this means a stalling market where H4 signals no longer valid. You have to switch to H1 or even shorter time frame until the price movement become clearly visible.	Strong and persistent trend If such exists, follow the trend and don't try to trade against it (trend is your friend). The contra-trend MACD signals in this case almost any time are false and reflect the short periods of correction/consolidation. At least case adjust S/L and T/P to smaller values and don't keep the position opened for too long, otherwise the trend continuation movement will spoil your profit or cause losses. Remember - in this case you can do a mistake once only - in the major turning point, so following the tide is safe and profitable.
The more narrow trading range is, the shorter period charts (H1-M30) must be used.

How to trade H1-M30 MACD bars

The basic principles remain the same but S/L and T/P must be adjusted accordingly to the current trading channel size.