5Min Intraday System

Just to show you the 4h chart during my above-mentioned trade. Consolidation phase rigth on the 8MA and don't expect more than 1-2 signals on 5min chart. Be careful.

See second 5min chart - that is why there is now a tripple bottom on the 5min chart and the price is moving upwards again. Don't even consider taking the next setup/signal - high risk!!!

Hi Golfer
Could this pattern on g/u today be considered 3 little sisters or do you prefer longer sisters?
Thanks for answer.

Hi Mkain

No, that was a perfect one for this 5min system - hope you got some of it for a few pips.

This is how you'll identify the start of the 3 little sisters:

1. Once you see a lower high is formed, immediately draw a line between the first and the next lower high.

2. Extend the line forwards and wait for the price to approach this line.

3. Keep a close eye on the price because it can turn around anytime to form the 3rd sister.

4. Enter on the sign that the 3rd is knocking on the door.

You could have entered just as the price turned away from your small resistance line. The 3rd sister knocked on the door right on the small resistance line and the 21MA. You cannot get it better than that.

Trade of today in e/j based in trendline+10 EMA bounce for +15 pips

EY trade today - very nice one.

EY - gave a few nice signals today, like the one Mkain mentioned. Great one!

Just came home from after a few holes of golf and saw the setup (before it could activate the Skype chat). I did enter before 21 came out of non-trad zone but I just like the following:

1. the smoothness of the TC on the MACD

2. just belowthe daily pivot line

3. already low high formed

4. daily pivot level tested twice already

Hi Mkain

Great one:

1. The TC was not that smooth

but

2. I do like the fact that there was bounce off the 10MA where it touches your small resistance line.

I do like the setups where my SMall resistance line and the 10/21 as well as the price come together.

EY - 3 little sisters chat on Skype:

[08:05:39 PM] Willem Kruger says: EY - note the 3rd sister being formed now. But is is above the 50MA. No short trade possible
[08:06:56 PM] Willem Kruger says: EY - if that 3rd sister was below the 50MA - temptation!!!!!
[08:42:40 PM] Willem Kruger says: EY - and that 3rd sister gave almost 20pips. They are so reliable.

See the attached chart

I missed this one while working on my PC and not watching the chart (don't really like to trade this time of the day.

But this is a great setup - I like the flat pullback with lower highs forming a descending triangle. Be on the lookout for support found with lower highs and wait for breakout. This is a typical example that you'll find on EY.

I just love this pair when it is going this smoothly - not a lot of tails and small candles. This is a movements with not much momentum but with the EY - you can get 10pips out of it.

Today I talked about this pattern with Golfer.
[07:28:46 a.m.] mkain dice:e/j showed 3 little sisters hours ago
[07:30:05 a.m.] mkain dice:no nice pull back on 10 ema or 21 ema
[07:41:57 a.m.] Willem Kruger dice:EY - nice triangle trade. One needs to draw the legs of the triangles (just draw line along the highs and lows) and trade between the support and resistance lines of the triangle. Little bit risky. talk later
[07:42:43 a.m.] Willem Kruger dice:EY - now the triangle is broken. No more trades
[07:42:52 a.m.] mkain dice:ok thanks
[07:44:24 a.m.] Willem Kruger dice:When 21 is below 0.15 line on SMAangle - go for the short trades within the triangle

Hi folks:

I have been testing similar system:

EMA 8, EMA 21 and EMA 55 (fibos numbers).. And here is the additional filter: RSI must be >50 in uptrend and <50 in downtrend. Give it a try!!

Just for ease my curiosity, which period do you use on RSI? I don't want to add other indicator but I could make a review of patterns in weekend.
Thanks for answer.

HI everybody, I am studying the system.
Is this the Ellipse within pullback signal set up?
And with MACD TC signal, SMAangle cross -o.1 line, did anyone take this trade?

A quickie on the gbpusd.

Hi Scarlet

Looking at your chart - Yes, it was a ellipse formation but I usually like to see 2-3 candles (small) at the top of the ellipse (find resistance within the war zone). This one had only 1-2 candles.

yes, a TC formation but not that smooth because we didn't have the 2-3 candles at the top of the pullback/in the war zone. A smooth TC is forming when there is a bit of a pause at the top - candles are getting even and getting ready to move back in the original direction (after the pullback).

REASON FOR SMOOTH TC PATTERN:
I HAD A PROBLEM DECIDING WHICH PULLBACK INTO THE WAR ZONE TO TAKE AND WHICH SHOULD BE LEFT ALONE. THERE ARE SO MANY PULLBACK AND SOMETIMES THE PULLBACK CONTINUE THROUGH THE WAR ZONE AND 21MA. YOU WON'T KNOW IT UNTILL AFTER IT BROKE THROUGH. ONE ASPECT IS TO LOOK AT THE PRICE MOVEMENTS/MOMENTUM. PHILLIP CAME UP WITH THE SMOOOTH TC PATTERN ON THE MACD USED IN HIS 4H SYSTEM WHICH ARE VERY RELIABLE. NOW I FEEL MUCH MORE COMFORTABLE TAKING THE SMOOTH TC SIGNALS. IT ALSO MAKE SENSE - REASONS BEHIND THE FORMATION OF IT.

No problem in taking that trade - enter on the opening of the candle opposite the bar next the first red bar on MACD.

What we have here is what Phillip calls "an aggresive turn around". The one moment the price is still moving up and the next moment the price will turn around and move downwards again. Usually you will find a typical 2-candle entry signal with a aggresive turn around setup with a sharp "corner" on the MACD. Meaning the price will hit the 21MA with one candle (green) and then move back downwards the very next candle (red). Not so easy to trade.

I like to see some sort of resistance and support found in the war zone - you will find that with a smooth TC.

I hope it make sense.

Hi Emarco

Welcome back - happy to see that you are still successful in trading. Many more to come.

Enjoy!!!!!!!!!!!

I had the same question.

I've looked at the RSI as an additional filter for this system but I was not very impressed. Maybe it is because of the short ime period or maybe I was just not comfortable with it. Just like the ADX. I know many people do like the ADX and find it very useful. Tested it but also - it is not for me (on this 5min system).

But what is working for you, might not work for me. Please try it and if it works for you, go for it.

RSI 14 periods.

Just one trade just a few minutes ago. Almost enter too early. I was anticipating a bounce of the zero line on MACD as the 21 was coming out of the non-trade zone. Bit risky but it did work out.

I did miss the 2 other opportunites on EY - 3 little sisters paid us a visit.

The charts of the two 3 little sisters formations. The first one was so fast - I didn't get an entry and I don't believe in a late entry. Please not that once a 3rd sister appears below the 50MA, I'll ignore the SMAangle rules.

The second chart - was busy and missed it. A = entry point using the 3rd sister rule. B = entry point using smooth TC rule.

Hope it make sense.