Microtrading the 1 minute chart

I think the sma length to use should be the same as the settings of the BB.

If the BB is set to 18 then set middle sma to 18, but standard default settings are 20 so if that is what you use then make sma 20.

aswilled: "Thats the key to my success. I don't have a system. But I do have a method to this madness. I just know how to trade."

This is why what works for some people might not work for others. Or, why it's hard to teach other people how to trade the way you trade. Our different personalities can dictate how we all trade so even though 100 people can be looking at the exact same chart, all 100 people may see some different and have different opinions about what they are seeing.

Back to the 1 minute:

I took a look back to see what I can see with the BB set up and have a few thoughts. I added pivot levels and fib retracements as well and opened the 5 and 15 min chart because the 1 min timeframe might now show some of these lines, they are there but out of your price (y axis) screen range on the 1 min. Because the pivots and fibs act as support and resistance levels, at some point price is always ( or most of the time ) going to approach these areas during the day. Knowing what these levels are and watching the 1 min should produce some high percentage (winners) trading areas/opportunities. Now remember, this is a 1 min timeframe so your target pips should be low. 5 pips after the spread is what I'm thinking. Leverage leverage leverage...5 pips can be $, $$, $$$, $$$$,....you know the deal. So, adding these areas or knowing where they are on the 5 or 15 min chart so you can 'see' them should be considered. Additionally, I know that for us Yanks in the US, the London open/session is early but in the first hour there should several opportunities during that time as well. Sometimes this market opens and heads in one direction or takes a 'few bars' to decide which way to go = more opportunites. But again, I still think that the 5 and 15 min should be watched as well. And as always, heading into a NFP or interest rate news even can cause markets to stay flat, even on the 1 min. I haven't looked at the 30 minutes or so before a news event but that should present some more opps as well.

I'm just throwing some things out here on this one. Rip on me as you like, I still haven't cleaned up my room....

well i just get alerts from my software. like aswilled i don't really have a set system and just analyze the patterns. like today for example i had a couple of alerts but i knew they were bs. but then i got one that i analyzed to be good and it was good for 25 pips. its hard to post a trade sample because one of my alerts can generate 100 pips or it can stall it all depends on the market. the main thing i do is just let the market tell me what to do i never have an opinion of whats gonna happen. like i said before im not greedy so im not trying to score 100 pips a trade id rather make less risky trades and make 100-200 pips a week.

I would love to know what others have experienced using certain brokers with a 1 minute strategy. I use interbank FX on a live account and it is dreadful. There is a terrible delay when there is volume/liquidity in the market, spreads widen anytime there is a candle that is a little larger than it's preceeding candles, and when things are slow... it's even worse. Take for instance a slow moving Asian session with a 15 pip range. You wait for a signal to enter into a position... and watch the chart for a good exit. 3 minutes later... you are checking to make sure you are still connected to the server and 3 candles appear instantly. Usually, it moved in my direction and turned around after a potential 5 pips profit could have been made if the feed was not so choppy. News time with interbank fx and the 1 minute chart is futile. Does anyone else use interbank fx and encounter the same problems? Does anyone use another broker and encounter the same problems? Is there anyone trading the 1M charts live with something positive to say about their broker?

I'm with FXDD and messed around with this last night on a demo, entry/exits were filled within a few seconds. I plan on doing this live with a $1 per pip leverage next week to time the fills live. I'll report on how this goes....The E$ spread is usually 2 pips, anything more than that would make trading the 1 min chart less cost effective....

Sounds great Palmer, thanks for the input. Where you referring to a particular method when you stated that you "messed around with this", or just the 1 m chart in general?

I think he is talking about the second post, the PDF

smjones is a smart cookie....Yup, I was referring to the pdf file. I just added the pivots and fibs as 'get ready for 'something' areas'. The thing to remember is that this is a 1 min chart. On longer timeframe charts when price is approaching a pivot or fib number, even if the closest price comes to that number is 5 pips or so, price can still be viewed as 'hitting the pivot or fib number'. I believe you must take that into account when trading the 1 min chart when you're maybe trying to only bank 5 pips at a time. So, if you're waiting for price action to hit that pivot or fib number on a 1 min chart it may never happen because on the longer timeframe charts price is already 'there'. I'm guessing the majority of traders don't trade 1 min charts, even 5 min. So, the bottom line is to take what you can get, period. I'm thinking the next step is to find the right time of day to do this or the right set up on a 5 min chart. There should be numerous opps for this. I've always been interested in the 1 min timeframe but it's the mindset, looking for 5 pips not 20 or 30, that has to take over. And, as usual someone else posts an idea and I run with it....

I guess I don't see why we need the Bollinger bands as in the pdf file.

Isn't this just another moving average cross? The 3 EMA crosses the 18 SMA (middle line of the bollinger) and the RSI and MACD line up? Seen that many times before. It can work. Or not....

I haven't looked at this enough yet but it seems like the outer BB act as boundaries to the price action. When price hits those areas take the pips. I was thinking the same thing with the MA cross but since this is a 1min chart and the goal is only a handful of pips per trade the outer BB can serve as a visual cue as an exit also...

Also with BB when it contracts to form a narrow band this can usually precede some sort of breakout. Also when the price hits the outer band price will tend to go for the opposite band. Chech out this site...

http://www.bollingerbands.com/

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Why anyone would limit there data by not having a 1min chart is up totally against me, illogical, and I recently tried to trade without 1min charts 1/2ing my account in the process.

I only have like 20mins of 1min data on display, then I have a 5min chart to the left of this.


Works for me.

I 'said' I was going to trade this live next week but I forgot about the Christmas holiday so I'll hold off until the following week. I'm off from work and that Monday is a holiday as well, Jan 1st, so I've got Tuesday through Friday on it. I see a few things ( a filter ) that could/may add to the success rate also. I'm going to attempt to put together a pdf file based on cesarnc's post on the Microtrading manual but that wouldn't show up until later next week sometime. Today would have been a GREAT day for this method. I'll describe it in the pdf file pending I can figure out how to do it with the free trial online version. I can do it in Word but the charts look like crap when they are inserted.....

Have a good Christmas to all those that celebrate it. If you observe another holiday during this time, peace to you as well.

Study Bollinger Bands Live, or remember there position of a moment in time, then 30mins later look at that time and note they've changed, they only look good in back test because they cheat, in live trading there useless, sorry!!

* p.s. haven't tested this, think it's right testing at the moment though *

Forget above, it does look like it's cheating, drawn vertical and 2 horizontal lines on my chart, no real movement, but abit static to be 100% sure.


Some sure do.

I try this system couple just for a couple of days now on my demo and it looks promising. Just dont wait to long as above stated... and I also add SAR to help me show the flow... (my $.02) Thanks for sharing this system!

OK...here we go. I finally sat down and put this together. I converted the Word file into a PDF file online and the charts still look crappy. You need to open Adobe Reader first then open the file from the Adobe menu. It didn't convert to a straight PDF icon 'just click and open file' for some reason. Either way, you my find some interest in this with this method. Some may say that this is just a MA cross system and the BB's aren't necessary but do whatever you want to. I traded this live last Friday and made about 14 pips with little screen time. Not sure if the markets are open Monday or even Tuesday now but I'm going to trade this next week....

I found EXCELLENT the idea of having the 5min acting like a filter. And here are my modest comments:
1)- Yes, A FEW PIPS ONLY
2)- Yes, only trade the 1 min when the market are showing a "good" volume. I use "good" volume to distinguish between "frozen market" and "news rush", ok? Problem with low volume is that when the volume increase, the market is not necessarily going to perform as 1min chart is showing. On the other hand, if you have a buy/sell signal in a good volume market, the first arrangements to define direction are already gone, so you will be much more confident for taking a position.
3)- Avoid using it during announcements because your 1 min chart will be pointing according to the last minutes price changes, that may change direction quickly after the release. But this is an excellent tool to trade the news' retracement, after like 15 or 30 min of the announcement, when volume decreases....

Nice trades!

César

Glad to help...Yes, the news retracements are a good 'area' to look for entries. And, I agree about the volume as well.

does anyone use the increased activity on tick charts and the 1min chart to show likely support/resistance?