5Min Intraday System

Hi EM

This is how I draw my lines using today's EURU$ 5min chart:

I need a minimum of two points to draw the line.

Once it looks like a possible intra-day trend is begining (price crosses the 50MA) I look for the last high or low candle (candle #1) before the price has crossed the 50MA. That is my first point. On this chart you can use the last few candles before the 50MA cross making it more reliable.

Next I do look for the first candle pullback into the zone or close to the 10MA (candle #2). That is my seond point. It doesn't matter where the SMAngle bars and 21MA are. I don't like to take the first pullback into to zone but this first pullback could be a profitable trade. I do prefer the second pullback.

Now I draw a line between the two point and extend it.

Look at candle #3 - the resistance line was broken and then I do take it that all future trades are cancelled. If candle #3 (or next candles) doesn't break the 21MA and move again in the direction of the trend, I use that candle as my second point. And then I do draw a second line but be careful with trades using the second line.

Look at the candles below #4 - nice and flat. Good sign for a great set-up being developed. Now wait for the candles to pull into the zone (#5) towards the 21MA. Trade is still on because the price/candles are still above the small support line

Now use the:

1. 2 candle rule or
2. Smooth round bottom/top as specify in my rules previously posted on this thread as well as Phillip's method.

I hope it makes sense.

Now lets see what happens with the 2nd set-up. I did enter on the next set-up after the small support line was broken. Nice second candle pullback from 21MA.

The outcome according to the rules - exit after 6 candles. 2pip profit - is it worth the risk? But lets see how it develops further. I know it is Friday but...

Today Eur Jpy was fantastic and easy to trade.
I regret that this afternoon i was not at home, so I could have taken the uptrend.
$/Y and €/Y are the better pair to be traded with this system, i think.
I'm going to swith to an ECN broker because have very low spread withi this pair.

A lot of people say that with this system you have to go for few pips, but I do not agree.
Look today: with a proper money management system (taking partial profit) you could have taken much more than 50 pips with just two trade on eur jpy.
It's all about waiting for the perfect trade.

Happy trading to everyone

Just to show you how the small resistance line show you which trades one can take - 2 profitable trades. But more important, look at the format of the candles and pullback.

hi golfer, Im wondering with the attached chart from the manual, I have put a black arrow on the 2nd bar inside the war zone, would that be a valid entry as it started pulling toward the 10 ma, from reading the rules on the 2 bar rule i think it would be a valid entry, I just want to make sure i'm understanding the 2 bar rule correctly, I just ask because the 4th bar is marked in the manual.

Thanks

Hi W

Great observation and well spotted.

Yes, looks like you do understand the principle pretty well. If you look at your candle, there is a small tail downwards. During the life price feed, that tail would have been a red candle - sign of a pullback away from the 21MA and a sign to enter. Well spotted.

I did use the long red candle just to make a point - to show a red candle pulling away from the 21MA. Much easier to understand. But on a life price feed, it is not that easy.

That is why one should practise your method of entry on a demo account - I still do that. It gives you a feel for the entry. If you see a possible pullback into the zone and the 21MA is still in the no-trade zone use your demo account and practise the entry from the 21MA. But for the real trades - stay with the rules.

The methods of enter are:

1. That example you've identfied now - first candle pullback into the zone an the second candle pulling back from the 21MA (just to confuse you - it could be the first candle hitting the 21MA and then pullback from the 21MA but don't worry about it).

2. There can be 3-5 candle withing the zone forming a nice smooth round top or bottom towards the 21MA and a pullback from 21MA. Enter on what seems like a pullback from 21MA

I hope it make sense and lets see what your trades look like.

I do advice you to look at Kunz78 charts - I do like his method of enter a trade.

sweet, thanks golfer for that response.

I'll let you know how I go.

Just the final outcome of the trade on post #1183 on previous page. And what its like on a late Friday before the closure of the market.

Hey Im learning this trading stradegy and I was wounderin where do i get the sma angle because i cant find it can anyone help?.......thanks

You just have to click on the little clip (http://www.forexfactory.com/images/misc/paperclip.gif) near the title of the thread. Here you can find all the attachment of the thread. The smaangle EX.4 is posted three time

good luck

Hi, I'm new to trading and I thought this might be a good place to start because of the simplicity of the system, although I realise nothing is that simple when you have no experience. I would appreciate some advice please. Is it best to monitor a lot of pairs when first starting out with this system or to focus on one or two ?

Thanks for your help.

sorry the quote shown has nothing to do with my message must have pressed the wrong button

hi Bundubill,

I think that this is a really good system to start trading because it allow to understand the price action of the market.
The thread is full of good advices and examples of trades.
You'd better stich with few pair in the beginning.
I suggest: €/$, $/Yen, €/Yen.

Good luck

Thanks kunz, greatly appreciate your advice.

Here is a fast one thati i just took on the cable with 1 min chart and 5 min chart supporting the entry with a round top
entry 1.9717 exit 1.9707

The last trades that I'm taking lately were mostly based on the 1 min chart, because with this TF I mangage to catch nice entry.
But i do believe that this approach is more risky than the classic 5 min entry.
I've been lucky with my trades and I made a nice number of pips, but i do not suggest anyone to trade with the 1 min chart, specially if new to the system.

I had to say this....

Happy trading to everyone

Long usdjpy on the close of 5 min bar. Entry 121.35. Thought this was the best looking setup to me...

That was a beautiful set up. Nice one. The best part is we are seeing the high probability set ups to enter.

Is this a familiar set-up (#1)? Look at post #1186 at the top of this page - it speaks for itself.

That is why Phillip told us to study the charts and set-ups to be able to identify (recognise repeat) high probability set-ups.

What I like about this particular set-up is the initial support found (#2) and then the next set-up (#3) is against that support line(now resistance). To me it means a high probability trade.

Once again, look at how the break in the small resistance (#4) line kept me out of a bad trade. Also look at the low candle - ?hammer (tail down) so be careful.

This is how Phillip told me to analise the market - not just taking each set-up as a trade.

Tx Phillip.