Here is a strategy to help you get in at a better place.
Create three Snap charts. They are all the same except 1 is a 5min chart, 1 is a 1Hr chart and 1 is a daily chart.
The charts all contain the same 2 indicators.
- a 18 period EMA, red in color
- a 45 period EMA, yellow in color
Make it a line chart instead of candles.
Now when you see a trade in your system go to these charts.
First make sure of the big trend with a simple weekly chart . It is pretty easy to see the trend most of the time. Do not trade against it.
Then go to the snap charts.
Here is how you read it.
- Red above yellow trend is up.
- Red below yellow trend is down.
- Additionally, the rate should be on the opposite side of the red from the yellow for max strength.
They do not all need to agree with you system, but the 5 min and 1 hr must agree with the trade.
The daily is gravy , when it is in agreement you have a stronger trade.
If the 1 hr agrees with you trade but the 5 min does not there are two way it can go.
In a short period of time the 5 min will rollover and join the direction of the 1 hour and your trade signal and you will be at a place that gets you a few extra pips.
The other thing that can happen is the 1 hr will roll over and join the 5 min in a direction that tells us we don't want to be in the trade,
and you will be glad you waited.
NEVER TRADE AGAINST THE 5 MIN OR THE 1 HR.
We have all heard the phrase "the trend is your friend". In this system the 5 min trend is your BFF.
You can also use the 5 min as an exit cue.
TRADE SAFE