Why Filter Trades?
The markets are noisy. Trading every movement on a lower timeframe often leads to "death by a thousand cuts." The H4-200MA Protocol is a trend-following system designed to filter out low-probability setups. By using the 4-Hour chart's 200-period Moving Average as a dynamic "line in the sand," we objectively define the macro trend (Bullish or Bearish). We then drop down to lower timeframes only to find specific entry cycles that align with this dominant momentum.
The Decision Matrix
A rigid rule-based system to prevent emotional trading.
BUY CYCLES
SELL CYCLES
Visualizing the Filter
Price Action vs. The 200 Period Moving Average
The chart below simulates price action interacting with the 200 MA. Notice how the Moving Average acts as dynamic support in an uptrend and resistance in a downtrend. We only trade away from the line, not into it.
The Statistical Edge
By aligning with the macro momentum (H4 200MA), we significantly increase the probability of success. Counter-trend trading (fighting the 200MA) often results in failed cycles and stop-outs.
Outcome Distribution
Trend trading isn't about winning every trade; it's about the "Fat Tail" distribution. We accept small losses to capture the large trend extension moves.
Timing the Entry: LTF Cycles
Finding the "Low" within a Bullish Trend
Once the H4 trend is confirmed Bullish (Price > 200MA), we zoom into the 15-minute or 1-hour chart. We are looking for market cycles (oscillations) that dip into oversold territory. The visualization below represents ideal entry points (Green Dots) where the LTF cycle bottoms out while the higher timeframe trend remains up.
Generated for Educational Purposes • Multi-Timeframe Strategy Visualization
Color Palette: "Energetic & Playful" (Blue/Pink/Orange)