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5Min Intraday System

  • #2,561
  • Nov 4, 2007 4:59am Nov 4, 2007 4:59am
Quoting Yorik
To train myself and to get more confidence while trading I'm analysing history (trying to be as objective as possible though remembering it's never equal to real-time trading). So far I've got analysis for EURUSD for October - see P.N.5Min_October-07.doc (zipped doc file with 23 images). And here's some statistics for it (also can be found in P.N.5Min_October-07_Stats.xls):

http://www.imagehosting.com/out.php/...toberStats.gif
Hi Yorik

Well done - I can see you do understand the basic of this system. Now for the real thing. Once you understand the basics of this system, you need to see how the setups develop with the real price feed. The entry action is the second most important part of this system. It is not like the 4h MACD system where you know where to enter. With the 5min system, it is a skill one needs to master.

What I've done for a month was to open a demo account and just practise my entries when I think it was time to pull the trigger. I didn't worry about the outcome of the trade.

Looking forward to see your trades
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,562
  • Nov 4, 2007 5:43am Nov 4, 2007 5:43am
Hello, Golfer.

Thanks a lot for a high mark given to my modest work! From you it's especially valuable for me. And you are absolutely right, now the main problem for me is when and where to open the trade.

So I would like to ask you and all other traders in this thread about how do you decide where specifically to enter?

For example, as for me: in general case, if a candle enters the area between EMA10 and EMA21 (on the image below it's the white one with shadows), I'm waiting for it to close and decide how steep was this pullback. If I see that it was not too steep, if I see signs of it's slowing down/turns, I am looking at the next bar which opens till it goes 2 pips up (uptrend) or down (downtrend, as on the picture) from its open price, and then enter. If the next opened bar still moves in the direction of the pullback, I'm waiting for the next etc.

For example:

http://www.imagehosting.com/out.php/...5_how2open.gif

If the pullback seems too steep for me I either miss the setup or wait for some candle combination to be formed with more signs of a turn (like a roundish turn, with small candles, or with several bars finding support/resistance at the same level etc.)

How does each of you act in the situation like that on the image? Do you have some specific number of pips a bar should go or do it "by eye", intuitively, or somehow else?

I'm sure that if we share this info this could be interesting and useful for all of us.
  • #2,563
  • Nov 4, 2007 7:13am Nov 4, 2007 7:13am
Quoting Yorik
Hello, Golfer.

Thanks a lot for a high mark given to my modest work! From you it's especially valuable for me. And you are absolutely right, now the main problem for me is when and where to open the trade.

So I would like to ask you and all other traders in this thread about how do you decide where specifically to enter?

For example, as for me: in general case, if a candle enters the area between EMA10 and EMA21 (on the image below it's the white one with shadows), I'm waiting for it to close and decide how steep was this pullback.

Excellent point - look at the steepness of the pullback. Also look at the size of the candles in the pullback. Large/long candles - be careful.

If I see that it was not too steep

Consisting usually of small candles.

if I see signs of it's slowing down/turns, I am looking at the next bar which opens till it goes 2 pips up (uptrend) or down (downtrend, as on the picture) from its open price, and then enter. If the next opened bar still moves in the direction of the pullback, I'm waiting for the next etc.

This is a great option but just be careful - it can still turn around, trigger your SL and then move back into the direction of your original trade.

For example:

http://www.imagehosting.com/out.php/...5_how2open.gif

If the pullback seems too steep for me I either miss the setup or wait for some candle combination to be formed with more signs of a turn (like a roundish turn, with small candles, or with several bars finding support/resistance at the same level etc.)

Yes, I agree!

How does each of you act in the situation like that on the image?

Very interesting setup. I wouldn't have entered because of the big up candle just before the turn around. Also there is no sign of resistance. And I am sure there was 10pips in it. But the setup was not what I am looking for.

Do you have some specific number of pips a bar should go or do it "by eye", intuitively, or somehow else?

No, by eye and not really by numbers.

I'm sure that if we share this info this could be interesting and useful for all of us.
Also what I am trying to do is to enter as close as possible to the 21MA. But it is not always possible. This is where my Small support/resistance line plays an important role. More than once would you find the enter is close the the Small support/resistance line.

Another issue to look for is when the Small support/resistance line is within the war zone of close the 21MA. I am concern when I do find the Small support/resistance line near the 10MA or even faster.

Look at the two examples - intial move is very fast causing the Small support/resistance to cross the war zone and 10MA. Also causing the possible entry to be taken on the 10MA

I hope it helps. My advice would be to open a separate demo account just for practicing your entries.
Attached Image(s) (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,564
  • Nov 4, 2007 7:31am Nov 4, 2007 7:31am
Just 2 examples showing my small supp/resis line near he 21MA and waiting for the price to bounce off the 21MA or my small supp/resis line.

Just another mechanism to consider/determine an entry point.
Attached Image(s) (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,565
  • Nov 4, 2007 11:01am Nov 4, 2007 11:01am
And another example of a typical trending EY chart where my Small support line stayed below the 21MA and where you could have taken the setups from the 21MA/SMall support line (indicated by the arrows).
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,566
  • Nov 4, 2007 12:06pm Nov 4, 2007 12:06pm
Quoting Golfer
And another example of a typical trending EY chart where my Small support line stayed below the 21MA and where you could have taken the setups from the 21MA/SMall support line (indicated by the arrows).
Thanks for such a detailed answer and the charts! To tell the truth, I haven't yet focused enough attention on the position\angle of small sup.\resist. line to EMAs. Now I'll do that. Thanks.
  • #2,567
  • Nov 4, 2007 12:33pm Nov 4, 2007 12:33pm
Quoting Yorik
Thanks for such a detailed answer and the charts! To tell the truth, I haven't yet focused enough attention on the position\angle of small sup.\resist. line to EMAs. Now I'll do that. Thanks.
Hi Yorik

But at the end of the day, you need to develop your own style of trading and look at which entry points fit your style of trading. My entry points will not always suite your style of trading.

See what works for you! And share it with us.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,568
  • Nov 5, 2007 4:08am Nov 5, 2007 4:08am
i golfer

i liked the summary of your october trades, my october using this syetm started very well i have managed to get my account a 120% increase in less then 2 weeks! but in the second half of the month went all down! i know my mistake however, i put emotion in my trades and traded when had some hard time at work and thus the result! this syetm works very well as i am only live trading it, as yet no profit in my favour as this october put me down but am positive for the future!

rgds



Quoting Golfer
Hi Yorik

But at the end of the day, you need to develop your own style of trading and look at which entry points fit your style of trading. My entry points will not always suite your style of trading.

See what works for you! And share it with us.
  • #2,569
  • Nov 5, 2007 9:15am Nov 5, 2007 9:15am
I had the very same problem when I've changed from demo account to live account. I was doing very well (75+%) using my demo account for 2 months. Then I've changed to my live account in Apr 2007 and it went terribly wrong (several reasons known to me). So I went back to demo trading untill last month.

It started OK, but then the emotions got the better of me. After a few losses (risk only 1.5% of my capital), I decided to trade in micro lots (0.01 to 0.05 lots). Now I do feel much better and I am doing much better.

This will help you to get the feel for live trading but you'll risk (and loose) the minimal. Also you'll get the necessary confidence to enter a trade when you recognize a setup.

Great strategy for when you are learning this system and you want to trade live.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,570
  • Nov 5, 2007 11:05am Nov 5, 2007 11:05am
Hi Golfer and all,

I have followed this system and traded live for some time. But at times, I enter a bit late after looking for confirmation, some winning trades turned out to be losing ones. Do you think ADX would be helpful and how do you use it? I didn't use it before and am now looking at it and see if it can provide some sort of quick confirmaiton. Thanks.
  • #2,571
  • Nov 5, 2007 3:12pm Nov 5, 2007 3:12pm
Quoting pipal
Hi Golfer and all,

I have followed this system and traded live for some time. But at times, I enter a bit late after looking for confirmation, some winning trades turned out to be losing ones. Do you think ADX would be helpful and how do you use it? I didn't use it before and am now looking at it and see if it can provide some sort of quick confirmaiton. Thanks.
Hi Pipal

I've tried the ADX and currently I just used it to confirm the "strenght" of the "trend" as well as correct side of the trend.

It is a very important point you mentioned - entered into a profitable trade too late resulting in a loss. I had the very same problem. I don't enter if I recognise the setup but the price has already moved a few pips in the direction of your trade. I'll wait for the next setup - too bad but great for them who took it!

That is why I practise for 8 months to identify high probability trade setups (price patterns) after the setups were formed (basically doing some lookbacks every evening and weekends)). Now I am trying to identify the setups as they are being formed on the right side of my Small support/resistance line.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,572
  • Nov 6, 2007 10:02am Nov 6, 2007 10:02am
I only had one change to enter what looks like a nice day to trade the EUR. But believe me, it was not that easy to spot great entry points during the live price feed. Very easy to spot them afterwards.

My trade which I decided to exit because of that two candles highlighted. It was also way too late in the trend. Very difficult to draw a nice Small support line. I just liked the support found on the daily R2 line and was looking for just 10pips.

Hope some of you made some pips on this run - I just didn't have the time.
Attached Image (click to enlarge)
Click to Enlarge Name: 20071106 5min trade 2.gif Size: 26 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,573
  • Nov 6, 2007 10:10am Nov 6, 2007 10:10am
I've just missed this setup/descending triangle by a few minutes/seconds/pips. Entry was possible on candles under arrows. This was a great one because you do have enough time to see the setup being formed, plan your trade and enter as close as possible to the Small resistance line.

I just don't believe in jumping in a trade after the trade already went a few pips. I'll wait for the next one.
Attached Image (click to enlarge)
Click to Enlarge Name: 20071106 $y descending triangle.gif Size: 26 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,574
  • Nov 6, 2007 11:24am Nov 6, 2007 11:24am
Another quick trade on EY - tried to take the first pullback into the war zone with possible descending triangle and Reverse church. After my small resistance line was broken - get out to BE as close a possible. There was also a higher low formed.


The first chart is to show the trade just after I decided to close the trade. The second chart is what happend afterwards. Sometimes it good to get out if you don't feel comfortable with your trade and nothing is happening.


Don't you just love the Small resistance/support lines!!!!!!!!!
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: 20071106 5min trade 3 b.gif Size: 28 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,575
  • Edited Nov 7, 2007 11:36am Nov 6, 2007 2:01pm | Edited Nov 7, 2007 11:36am
thanks Golfer
i really got somethimg.
  • #2,576
  • Nov 8, 2007 9:50am Nov 8, 2007 9:50am
My trade today on EY. I like the strong move downward - resistance on small resistance line. Then I entered on 10MA - should have waited for 21MA. Once the price went through my small resistance line, I was look for a exit as close to BE as possible. Just put a TP order 2-5pip away from entry point. Then try to close the trade manual (sometimes very difficult) - price move too quickly with EY.

I didn't put in a SL and luckily it came back for a 5pip profit.

The green doji's tail earlier as well as two other candles went through the small resistance line - should have been a warning.

Be careful with the EY - this trade went very quickly (withing minutes) 30pips against me.
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,577
  • Nov 8, 2007 9:56am Nov 8, 2007 9:56am
And a higher low was formed on EY - I'll be very careful now.

I was looking at the $Y at the same time - possible double bottom formed (1 & 2). But still under the small resistance line. Lets see what's going to happen. Still looking good as long as Small resistance line is not broken.
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: 20071108 $y double bottom.gif Size: 26 KB
Willem Forex recipe for success = Patience, discipline & hard work.
  • #2,578
  • Nov 9, 2007 1:21am Nov 9, 2007 1:21am
I have been trading live for the past two weeks with positive results. Although I was just trading on my candlestick and price movement knowledge. This strategy will help validate my current trades.

Learn to read the candle stick formations and combine it with this strategy. You will be seeing a lot of green pips in the future guaranteed!

I watch for a break of the short term trendline on 1m charts or triple tops/bottoms for a potential exit.

And I watch 5 minute chart to see if there is a double bottom or U shape.

Also Take a peak at the 15 min chart to see if I am at a top or bottom with a potential reversal.

And I also watch the past 1 hr to note the previous high/low and support and resistance!

Good luck friends.
  • #2,579
  • Nov 9, 2007 6:27am Nov 9, 2007 6:27am
on the 5min charts which candle formations do you use to choose if or not to enter a trade?

tks

Quoting gio9
I have been trading live for the past two weeks with positive results. Although I was just trading on my candlestick and price movement knowledge. This strategy will help validate my current trades.

Learn to read the candle stick formations and combine it with this strategy. You will be seeing a lot of green pips in the future guaranteed!

I watch for a break of the short term trendline on 1m charts or triple tops/bottoms for a potential exit.

And I watch 5 minute chart to see if there is a double bottom or U shape.

Also Take a peak at the 15 min chart to see if I am at a top or bottom with a potential reversal.

And I also watch the past 1 hr to note the previous high/low and support and resistance!

Good luck friends.
  • #2,580
  • Nov 9, 2007 7:18am Nov 9, 2007 7:18am
Quoting gio9
I have been trading live for the past two weeks with positive results. Although I was just trading on my candlestick and price movement knowledge. This strategy will help validate my current trades.

Learn to read the candle stick formations and combine it with this strategy. You will be seeing a lot of green pips in the future guaranteed!

I watch for a break of the short term trendline on 1m charts or triple tops/bottoms for a potential exit.

And I watch 5 minute chart to see if there is a double bottom or U shape.

Also Take a peak at the 15 min chart to see if I am at a top or bottom with a potential reversal.

And I also watch the past 1 hr to note the previous high/low and support and resistance!

Good luck friends.
Hi Gio9

Good for you - how about some examples/charts to show us how you do it? Maybe some of us can benefit from it.

Enjoy the trading
Willem Forex recipe for success = Patience, discipline & hard work.
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