5Min Intraday System

It was a risky one, because of the higher low. But i decided to take it. It found strong resistance at 10MA.

Hello!
I started to use this system and i think a SL 6 pips is too small, dont you agree!!

I make an EA but dont open trades it only monitoring your open manual trades! You set the SL and Takeprofit in Ea proprieties and then it close the trade when reach the values set in EA proprieties!

Does anyone have an EA for this 5MIN Stratagy yet?? and if so is it profitable?

let me know thanks

Hi M4x

My pesonal opinion:

I don't think an EA would work on this system because you should not take every setup/pullback. Each setup must be evaluated individually to determine the risk (only high probability trades should be entered/taken). You need the human decision making in this system.

Sorry.

Hi Sher

Yes, on cable you do have a chance for 10pips on a setup like that (will also work on the EY - definitly not on the EUR). The resistance on the 10MA is the key. But just look what afterwards (in the ellipse) - the result of the higher low (I am always careful for a higher low or lower high).

General advice:

Don't enter on a pullback where I've put the 2 "x". Wait to see what will happen to that candle and if there is resistance to be found on the 21MA for 1-3 candles. This instance it went through the 21MA. You would have been in big trouble if you've entered just because there is pullback towards the 21MA. That is just one candle - wait for confirmation with another 1-3 candles.

Just another example why I think an EA won't work for/on this system.

btw until now i dont like EA
manual trading is a nice trading
same like a game !!!

Sorry but I couldn't participate on the Skype chat today - had to keep the wife happy. This what I saw on Cable - also discussed with Abraham very briefly.

The trade was on where my arrows and price tags are and the Reverse church is in the ellipse (the building part finding resistance). Be careful for lows 1 & 2 - strong support found on M1 line. After that no proper price pattern to speak of and no possible trade.

Just some general information:

In order to be successful in the system/or for that matter any trading system - one needs to:

1. Understand the fundamentals/principles on which the system is based.

2. Study the charts posted by members to make sure one understands why certain trades were made.

3. Start with paper trades/demo trades to get a feel for the system and to ensure that you do understand it.

4. Start posting your charts on the thread so that people can leave comments.

5. Once you understand it you can start trading with the live account - first with micro/mini lots (this is where I am now) and then later with full lots (once you do have the confidence to identify high probability trades)

Without the understanding of the principles of the system, you won't be successful - I can almost give you a guarantee for that.

I see people are struggling with the price formations - so once again an example of Church to right formation (which will only be found on an upward movement):

1. Once you do see that a spike/high on the chart - be on the lookout for a church to right formation.

2. That spike/high is usually what I like to call the belltower of the Church.

3. After the high, there is a small pullback - usually up to the 10MA - just to complete the formation of the belltower.

4. Then the price will find support on the 10MA with a serie of small candles - meaning the price doesn't know where to go because of the support on the 10 MA.

5. That series of candles is what I call the church building.

6. You can now expect another spike/high upwards - you need to enter just before that spike. See how close the church building can go to 21MA so that you can enter as close as possible to the 21MA.

The example of the chart is early this morning in the Asian session and your entry should be the opening of the candle just above the arrow.

I hope it would make more sense now. I don't know if I'm wasting my time but I do find this price patterns very valuable in this system. Sometimes it's very difficult to decide which pullback should be taken. During my studies of the charts, I've realised that my high probability price patterns are frequent guests on the charts giving me a higher rate of success.

The opposite of the church to right formation is what I called the Reversed church formation (only to be found downward movements):

1. The very same principles apply to this formation - the belltower is now pointing downwards with the building part finding resistance, usually on the 10MA.

2. It is just the reversed image of a normal church/cathedral.

3. The entry for the set-top was once again the opening of the candle below the arrow as indicated.

Just look at the chart below and look at the previous set-top (just before the Reversed church formation). The is no recognized price pattern and it is sometimes difficult to decide what the price will do. Luckily you can see a smooth round top is forming - another price pattern Phillip is looking for. Sometimes I would like to see a smooth round in the insight of the top (ellipse price formation). For that specific set-up it did work out.

Look at the set up after the reversed church formation - no recognizable price pattern whatsoever. Only a higher low - meaning the price is probably on the move upwards.

Just another example of a price pattern - the ascending triangle:

1. Once you see higher lows being formed on the candles - be on the lookout for the ascending triangle

2. Once you see the higher lows on the candles - look for resistance on the upper parts of the candles.

3. I don't like to see the candles going down and then up again - that is a double top being formed meaning the price could come down.

4. All the highs of the candles should be near that resistance line with the lows of the candles moving upwards.

5. The higher lows of the candles meaning they is pressure from below to push the price upwards.

Below is an example of a chart with the ascending triangle. And just for interest sake - a church to a right formation being formed at the end of the chart.

You can just use the opposite for a descending triangle.

That is enough for now and I hope it makes sense.

What I've done and what I would recommend you to do is the following:

1. Open a five-minute chart with all the necessary indicators for the five-minute system.

2. If you are using a MT4 platform, press the F11 key on your keyboard so that the chart is on full screen (to get a better view of the charts). Make sure that you have unchecked the "chart auto-scroll" icon on your properties menu.

3. Then go backwards in time as far as you would like to go.

4. Then used the F12 key on your keyboard to shift the chart candle by candle. Don't cheat by using the page up or down key. Then the chart will move five or six candles at the time. If you want to go back just use the shift & F12 keys - it will go back candle by candle.

5. Then see if you can recognize the price patterns as they appear.

6. Try to determine your entry point before you put the next candle on the screen - that is another way of doing paper trading on backtesting. I've done this usually over weekends.

7. Now you can follow the live charts to identify the patterns

That is how I've trained myself to recognize the price patterns. It is no use just looking at the charts after the price patterns have been formed (posted on the thread). It is very easy to recognize the price patterns after they've been formed but its not that easy to identify the patterns as they are being formed. This exercise will help you with it.

Please make sure that you do understand the price patterns because that is what I/we usually discuss on the Skype chat (what you should be looking for while the price patterns are being formed) (only on three pairs - EUR, Cable and EY). And sometimes it is very quick and we don't have time to explain the price patterns.

Once again, I hope it makes sense. Just sharing my experience with you - take it or leave it.

Hi Golfer,
Thanks for the information! "Repeating is the mother of knowledge"

Wiliem,

I didnt know how to do that in MetaTrader, as always thanks for your excellent input and direction.

Hi Golfer!
Thanks again for sharing your experience!
And want to thank Phillip for this wonderful system!

Ascending triangle on UsdJpy. Unfortunately I wasn't near my pc and missed it. Hope someone took it.

Sher - i took that trade but about an hour earlier and had to sweat a little but got the 10 pips i was after. Took earlier as it was a nice retrace to 50% fib and to a mid pivot and that trend line.

My Cable trade as discussed on Skype. I just opened my platform and was about to explain this system to my brother in law when I saw the setup:

1. First I was worried about the M2 line which was tested 3 times (candle 1, 2 & 3) as mentioned by Cristi

2. But I liked the ascending triangle being formed (support on M2 line with lower highs for example candle 4, 5, & 6 with that line going through 4 & 6 sloping downwards).

3. Also another price pattern formation which I haven't discussed before - see the long cande 5 downward followed by 3 small candles upwards but the third one didn't reach the high of candle 5 before going down again (candle 6. Then there is the 3 small bullish candles again and my entry point was the last of the bullish candle.

4. It is always good to have an indication of what the longer term charts is teling us. Try and enter the setups in the direction of the longer time frames. The 4h chart is telling us ther is a bounce off the 8MA downwards. Also a support level as indicated with price tag. That is another reason why I didn't let my profit run - no more room left. That is why it is so important to know both system - it compliments each other.

Hi Sher

Yes, great example. Like Phillip told me - if I just trade the price patterns, I'll do well.

Chirsti on Skype mentioned the nice moves of the yen but I was on the road for 7 hours and didn't follow the markets yesterday.

Thanks and may the best of 2007 be the worst of 2008
Phillip

hi all
i think i didnt write here for about 3 months.any way nice to see u again
just want to show u a nice triangle breakout in M1 chart for usdjpy which i trade on friday and say happy new year.