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5Min Intraday System

  • #1,441
  • Edited Jun 15, 2007 12:54am Jun 14, 2007 11:41pm | Edited Jun 15, 2007 12:54am
Just to show you what happens if one doesn't follow the rules. Everything looks good except the 21MA on SMAangle was in the NON-TRADE ZONE. I didn't even draw my small resistance line - should have also been broken.

You can end up with positive trade like this (only 5 pips) but it is not worth it.

Too much at stake and the price can go either way!

I did entry the trade on demo account just to practice my entry actions on a pull-back from the 21MA.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpy 200700614 high risk trade.jpg Size: 75 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,442
  • Jun 15, 2007 10:13am Jun 15, 2007 10:13am
My 1 min news trade today. I've tried to enter in the war-zone on a pull-back from the 21MA. Unfortunately the price when through the 21MA to the 50MA but it didn't trigger my SL (could have entered at a better rate but one doesn't know at that stage).

Outcome was:

1st half: 0.5 lot x 16pips = 8pips
2nd half: 0.5 lot x 4pips = 2pips

Making a profit a 10pips

I did use the 21MA as my SL (following the 21MA every minute and adjusting your SL accordingly) after I've close half of my lot. The reason why I've missed the move afterwards.
Attached Image (click to enlarge)
Click to Enlarge Name: euru$ 20070615 news 1min.jpg Size: 73 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,443
  • Jun 15, 2007 10:30am Jun 15, 2007 10:30am
Quoting Golfer
Hi W

Anytime, just register with Skype and send your Skype ID to one of the members already in the chat room. He/she will add you to the chat. Just take note that the chat consists of instant message (IM) and not "telephonic conversation". You can have private chats/telephonic conversation with members however.
Hi, I've signed up to Skype. My user ID is 'watchout4me2'. can someone add me into the chat room?

i understand, it's only instant message and not telephonic conversation.

thanks
  • #1,444
  • Edited 12:38pm Jun 15, 2007 12:20pm | Edited 12:38pm
A quick trade while chatting to watchout4me on Skype. I saw the set-up and the pull-back looked good and it looked like support around 10MA. I was just worried about the 21MA that was above the 0.4 line making this a high risk trade and keeping hands on the trade (tight SL and take profit quickly).
Attached Image (click to enlarge)
Click to Enlarge Name: euru$ 20070615 trade 1.jpg Size: 71 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,445
  • Jun 15, 2007 1:50pm Jun 15, 2007 1:50pm
Just the message I've put on the Skype chat today:

"I think this is the market motion Phillip is refering to - on the EURU$. Just look at the nice support found on the 21MA. That is why we do some positive high risk trades"

The pull-backs are in the green rectangles. Look how the rectangles ends near the 21MA - support found.

Just look at the first pullback through the 21MA - wait for another pullback with support found on 21MA before considering another trade.

Also, be careful when 21MA on SMAangle is above 0.4 or below -0.4
Attached Image (click to enlarge)
Click to Enlarge Name: euru$ 20070615 smooth pullbacks.jpg Size: 75 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,446
  • Jun 15, 2007 3:06pm Jun 15, 2007 3:06pm
Richard7 question:

Suppose you take a 5min trade on a valid set up and it takes out your mental stop, but stays near the 21 and above the 50. Would you take it again if it moves back up through the war zone?

My reply:

My previous rule stated that if the candle closes on the wrong side of the 21MA, I'll wait for another set-up and I won't take the pull-back back through the war zone.

Too risky - but it can give you a positve trade

I'll wait for nice support or resistance on 21MA

I don't like tails going through the 21MA

I've told Emarco on the thread this week. I watched his U$JPY charts on the thread and there were many with tails through the 21MA resultsing in losses

Do a little bit of back-testing and look what is the result after the price went through the 21MA

Summary - I won't take take that trade.

You wait for the same "trend" to find support/resistance again and then I'll take the trade in the same direction. But not from the wrong side of the 21MA

See the attached chart as explanation - I would not really take trade on candle #3 (because of several reasons) - just an example to explain my rule.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpu$ 20070615 tails through 21ma.jpg Size: 71 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,447
  • Jun 15, 2007 9:41pm Jun 15, 2007 9:41pm
Quoting Golfer
Just to show you what happens if one doesn't follow the rules. Everything looks good except the 21MA on SMAangle was in the NON-TRADE ZONE. I didn't even draw my small resistance line - should have also been broken.

You can end up with positive trade like this (only 5 pips) but it is not worth it.

Too much at stake and the price can go either way!

I did entry the trade on demo account just to practice my entry actions on a pull-back from the 21MA.
Hi, Golfer! Nice to have you back from vacation. Could you please explain, why this this was a non-trade-zone? And what rule was not followed here?
  • #1,448
  • Jun 16, 2007 12:54am Jun 16, 2007 12:54am
Quoting alexfot
Hi, Golfer! Nice to have you back from vacation. Could you please explain, why this this was a non-trade-zone? And what rule was not followed here?
Hi A

Tx.

The non-trade zone is the area on the SMAangle indicator between the 0.1 and -0.1 lines. For the EURJPY pair, Phillip and myself decided to take the 0.15 & -0.15 lines and borders.

While the 21MA remains within that area, I don't consider a trade. That is the Rule (Trade criterion 2.2 of the My Rules).

Once the 21MA breaks through the 0.1 line, I'll be looking for a set-up to go long or a break of the -0.1 line means I'll be looking for a short trade set-up.

Look at the attached picture:

Non-trade zone is the green rectangle on SMAangle. 21MA breaks through the 0.1 line at point 1.

Now you start looking for a long trade set-up between point 1 and 2 in the green ellipse.

Look at the previous posts to see why I didn't take trade-setup on candle #3 but I took the high risk trade set-up #4.
Attached Image (click to enlarge)
Click to Enlarge Name: euru$ 20070615 nontrade zone.jpg Size: 70 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,449
  • Jun 16, 2007 9:47am Jun 16, 2007 9:47am
Thank you Wil, I got it now. I'd like also to ask how you added the 21MA to the SMA_angle indicator. I tried to do that but did not find the way. And btw what is the non-trade-zone for EUR/USD and GBP/USD?
  • #1,450
  • Jun 16, 2007 10:22am Jun 16, 2007 10:22am
Hey, Golfer! I decided you did not take the trade #3, because the one candle closed lower than 21EMA, but the Sma_angle was in trade zone, so I guess it's very important for the price to get away from the war zone, because of the high risk for trend reversal. Is that right?
About #4. I think you took it because the price was in the war zone and tending to take off 10EMA, but SMA_angle was higher than 0.4 level. So I guess that the big hight of Sma_ angle less important than being in non-trade-zone. And besides that, the Sma_angle was on decline and on it's way to the trading zone, and the trading zone is between 0.1 and 0.4. Is that right?
  • #1,451
  • Jun 16, 2007 12:14pm Jun 16, 2007 12:14pm
Quoting alexfot
Thank you Wil, I got it now. I'd like also to ask how you added the 21MA to the SMA_angle indicator. I tried to do that but did not find the way. And btw what is the non-trade-zone for EUR/USD and GBP/USD?
Hi A

The attached word doc will explain the procedures to be follow to "build" the SMAangle window. Hope it helps.

I keep my non-trade zone for EURU$, cable and U$JPY between 0.1 and -0.1. It is only EURJPY which we (Phillip and me) decided to change to 0.15 and -0.15.
Attached File(s)
File Type: doc 5min system My Rules The SMAangle indicator window.doc   27 KB | 743 downloads
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,452
  • Jun 16, 2007 12:20pm Jun 16, 2007 12:20pm
Hello Alexfot, if I can add my 2 cents on what Golfer was saying, yes your right, he doesn't take trade 3 because there was a candle tail close under the 21 EMA but also because the pull back into the war zone was too steep (big candles).

As for the the number 4, I think the main reason that he took it although it was a high risk probability trade due to the fact that the 21 on the SMAAngle was more high than 0.4, is because the pull back was very smooth with very little candles and it formed a nice kind of round bottom which is the best kind of setup for taking a trend continuation.

Please Golfer, if I am wrong in evaluating your rules, correct me.

Shreem
  • #1,453
  • Jun 16, 2007 12:27pm Jun 16, 2007 12:27pm
Quoting alexfot
Hey, Golfer! I decided you did not take the trade #3, because the one candle closed lower than 21EMA, but the Sma_angle was in trade zone, so I guess it's very important for the price to get away from the war zone, because of the high risk for trend reversal. Is that right?

Yes but main two reasons are that the price went 21MA and even close below it. Secondly the pullback towards the war-zone was too steep. One needs to have a more flatter pull-back.

About #4. I think you took it because the price was in the war zone and tending to take off 10EMA, but SMA_angle was higher than 0.4 level. So I guess that the big hight of Sma_ angle less important than being in non-trade-zone. And besides that, the Sma_angle was on decline and on it's way to the trading zone, and the trading zone is between 0.1 and 0.4. Is that right?

Main reason for taking the trade was the flat pull-back towards the war-zone.
Hi A

Just a few additional points to streamline tour trades:

It is very important to look at the price action and get use to the price motions of a pair. The size of the pull-back candles and the angle is very important. Look for the small candles and flat pull-back.

What I found very helpful is a filter I've developed and that is my small resistance/support lines. Many people won't agree with it because it can keep you out of several profitable trades. But it has kept me out of more negative trades.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,454
  • Jun 16, 2007 12:38pm Jun 16, 2007 12:38pm
Quoting shreem
Hello Alexfot, if I can add my 2 cents on what Golfer was saying, yes your right, he doesn't take trade 3 because there was a candle tail close under the 21 EMA but also because the pull back into the war zone was too steep (big candles).

As for the the number 4, I think the main reason that he took it although it was a high risk probability trade due to the fact that the 21 on the SMAAngle was more high than 0.4, is because the pull back was very smooth with very little candles and it formed a nice kind of round bottom which is the best kind of setup for taking a trend continuation.

Please Golfer, if I am wrong in evaluating your rules, correct me.

Shreem
Hi S

Well done and excellent analysis.

Just note that #4 to me was a high risk trade only because:

  1. the 21MA on SMAangle already went through 0.4 line
  2. "Late" Friday afternoon
  3. Already a 60pips move - we are in beat 2 (I think that is what they called it).

(Markets moved in 30pips beats)

Otherwise set-up was great. Be careful after the 21MA on SMAangle goes through the 0.4 or -0.4 line (developed by Kobus Lotter on Skype chat).

Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,455
  • Jun 16, 2007 12:46pm Jun 16, 2007 12:46pm
Thank Golfer, well noted points for trade 4. I agree with you, taking a trade on friday afternoon, one need to be careful. I do really like the concept of 0.4 and -0.4 as it can really help us to be careful about an over extended move that can run out of steam and then have a greater chance of changing the trend direction. Yes, I remember one MP3 of Phillip talking about the beats of the market as an important to note before entering a trade.

If there is already a move of 60 pips (on Euro), one need to be very careful.

Thank Dear Golfer for your excellent contribution that you add on this thread.

Your analysis with the one of Kunz78, Emacro and others are very helpful.

Shreem
  • #1,456
  • Jun 16, 2007 1:06pm Jun 16, 2007 1:06pm
Quoting shreem
Thank Golfer, well noted points for trade 4. I agree with you, taking a trade on friday afternoon, one need to be careful. I do really like the concept of 0.4 and -0.4 as it can really help us to be careful about an over extended move that can run out of steam and then have a greater chance of changing the trend direction. Yes, I remember one MP3 of Phillip talking about the beats of the market as an important to note before entering a trade.

If there is already a move of 60 pips (on Euro), one need to be very careful.

Thank Dear Golfer for your excellent contribution that you add on this thread.

Your analysis with the one of Kunz78, Emacro and others are very helpful.

Shreem
Hi S

Pleasure is all mine and keeping posting your opinion/analysis so that we can share - I am sure it was Phillip's viewpoint when starting the 2 threads.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,457
  • Jun 16, 2007 1:28pm Jun 16, 2007 1:28pm
Hello Golfer, you can count on me, as my confidence in both the 5Min and 4H MACD increase, I will definetely post my trades and analysis as these 2 threads are really the best I have ever see.

Since beginning following Phillip method of both thread, I can say that finally I have found what suit best my personality and after 2 years of research, I have no interest to look anywhere again anymore.

I truly beleive that if one take the time and effort to master these 2 complementary methods, one can certainly succeed.

It just take some time to master it, dedication to it, discipline to follow our plan without fail when we master the technics and a true confidence in ourselves that we can acheive tremendous success.

Wishing all great pips in the coming months

And again a very great thank to Phillip and other posters for time and efforts put in all these.

Shreem
  • #1,458
  • Jun 16, 2007 1:32pm Jun 16, 2007 1:32pm
Quoting shreem
Hello Golfer, you can count on me, as my confidence in both the 5Min and 4H MACD increase, I will definetely post my trades and analysis as these 2 threads are really the best I have ever see.

Since beginning following Phillip method of both thread, I can say that finally I have found what suit best my personality and after 2 years of research, I have no interest to look anywhere again anymore.

I truly beleive that if one take the time and effort to master these 2 complementary methods, one can certainly succeed.

It just take some time to master it, dedication to it, discipline to follow our plan without fail when we master the technics and a true confidence in ourselves that we can acheive tremendous success.

Wishing all great pips in the coming months

And again a very great thank to Phillip and other posters for time and efforts put in all these.

Shreem
I can't agree more!!!!!!!!!!!!!!
Willem Forex recipe for success = Patience, discipline & hard work.
  • #1,459
  • Jun 16, 2007 1:40pm Jun 16, 2007 1:40pm
Thank you guys both(Golfer and Shreem)! That was very helpful for me, can't wait for monday to try it. I still have a problem with 21MA in Sma_angle, I pull it to the indicator frame and it opens the window, I change the settings, click OK and MA does not appear anywhere, not in indicator frame not on the chart. What that could be?
  • #1,460
  • Jun 16, 2007 1:53pm Jun 16, 2007 1:53pm
Hello Alexfot, if you yant to settle your problem for the 21MA on the SMAAngle, please just save this template on your MT4 under program files/mt4 platform/template and then you load a new chart, just go to the icon template on the top right side and load the 5minzone template and you will have the indicators all at once that Phillip use for this strategy.

From there you just change the settings at your convenance

Hope it help you

Shreem


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