The Force 5min system

Did you use the Force setup right on S1?....i'm not in on this wave atm, having to wait for the next signal. I'll take the long for pennies on any retracement, my money will be on the next short signal, given the 4hr flow has now been broken downside.

I am still trying to learn his system. I have a learning disorder and have to rely on repiticion to learn. I need to see the trades being made and learn from that. I do not comprehend as others do. But I will get there. Most of my trades are directional from the 4 Hr and the Daily with entry on the 5 and 15 min T/F's. But I do want to learn this scalping method because it is fun and it keeps me busy. I have been laid off and can not find a job right now, and to top it all off I have a handicapped son I have to support with no medical care. So I need to learn to trade as many ways as possible. I would love to be able to place my long term trades and then trade this system in between. So thats my story.

Jim

Hey Jim,

I have been here for some time and learned tremendously from FJ.
Why not join the chatroom everyday 12 - 7. FJ will be there and he will definitely guide you.

God Bless and lots of pips ! Bye

I was there earlier and nothing was going on. I may try that out.

Your longer TF trading sounds a good plan, Jim. Good for you. I sympathise with your situation. The support from FJ and others here will keep you on track with the Force setups. Like you say, keeps you busy and it IS great fun to trade ....what a move so far, eh? No doubt FJ and others are making hay.

You may get your retrace now at 2700. we will see.

Jim

after already 294 pips daily range and -234 pips down from the open, i dont have the guts to take this short signal. How deep is the ocean?

just a quick scalp 12 pips.
Long signal was ok but for a market reversal there should be another higher low first.

I hope everyone will take the time to read this lenthy post about my thoughts on several subjects. Thought 1. When I first posted this strategy here on FF I was not sure what to expect based on the mass number of systems posted on this site on a monthly basis. I went from being a descrete fores trader to mentor almost ovenight. Let me say that I really enjoy helping people learn forex and have decided to take on the extreme task of helping everyone that want to learn. What does learning forex really entitle? Forex is a huge amount of learning to the equal of a lenthy post secondary education. There is no easy way to become a good forex trader. You can not just open a forex account and become a success overnight. Its taken me six years to get to the point im at today and its been a long heart aching process of trial and error. Persistance and hard work got me here. My system can be the key to anyones success in forex but again requires hard work. I can tell the things my system is not. My system is not a Moving Average or Stochastic cross system. You can not take every cross and make mega pips. Basic rules are strategicaly designed to get traders used to the idea of the MACD, Stochastic and Moving Aveverage indicators. One must master every aspect of these indicators and fully understand them in every way before moving to the advanced rules. The advanced rules are setup as the next key level to my system. In advanced rules I have added in Pivots and Trend Lines and changed the entry rules. Again one must master every aspect of the advanced rules to understand the full picture of my system. One must understand that not every bounce of a TL is a entry. One must learn to be patient and wait for the proper setups of the correct trend lines. Trading bounce of short term TLs is not te way this is done. One must know everything about TLs, pivots, MACD, Stochastics and Moving Averages to move forward from there. The basic and advanced rules are designed to create the end effect of training your eyes and mind to master the art of undestanding price action. Ah yes... Price action, the best way to trade in any market. Knowing your price action not only involves knowing all the indictors mentioned above but also knowing your pair inside and out. This means sticking to the Eur/Usd and the 5min timeframe only. One must resist the urge to look at anything else. I can tell you from experience that this is the way its done. Aks any pro trader and they will tell you the same thing. The only way I can teach anyone is if they can follow this rule. Te me, any action going on with any other pair or time frame means nothing. This does not effect the way my system works. Why you may ask? Because my system is based on price action in the end. This means it doesnt matter what is going on with any other time frame because we will pick it up on the 5 min chart. If there a pin bar on the 1h or head and shoulders on the 4h or double top on the d1 it doesnt matter because my system based on price action will pick up these movements. Why you may ask? Because it on the 5min chart and its based on price action. We will catch all the moves worht trading. If the price is bouning of a TL on the 30 min chart we will catch this move with my system because it based on price action. One MUST understand this concept to fully understand my system. Once one comes to the realisation of everything above then they are ready for the expert rules. I am willing to teach the above to people and have a massive project underway to do so. Ill keep everyone posted. Lets move on to the chat room. Currently in the chat room I am calling trades and feel as though im a signal service more than a mentor there to help people learn t trade FX. Some people may have noticed ive pulled back on calling trades a bit. This is because no one will learn fx if there just waiting for me to say buy/sell. Moving forward the chat room will be more of a place where I will answer questions and help people through trades. I will post charts here on FF and include comentary based on what I see. Traders in the chat room will combine their knowledge of my system and assist each other in calling trades and work as a team. I will on the other hand give my opinion if I think a trade is doomed to failure. I will let people know what I see is going on in the market and let people know whe a adjustment needs to be made to their charts ect... The big change will be that I will no longer say buy/sell now ect.. I will post all the trades I am involved in here on FF but will only do so 15 minutes or so after the signal has take place. Trades posted here will list all the reason why I have take the trade and comentary on where I think it is going. While on the subject of the chatroom I would like to bring this up. Please do not come to the chatroom and start talking about other indicators, timeframe, pairs ect as this only clouds ones mind whe one should be focused the task at hand without any other influence. Also please dont come to the chat to show of a system that is not the force or come to the chat to prove my system is faulty as my system is not faulty. If you will judge my system before knowing the finished product which is knowing my system right up to the Expert rules then you dont have the proper attitude that traders learning need to be exposed to. Last but not least I want everyone to know that I want people to be a success in FX and this is why I will approach things the way I am. It pleases me to see the progress of traders learning from the chat and this thread. The only thing I ask in return is that everyone post their trades here in my thread and comments on their success and the system to assist other traders with their learning process. I would like to see traders who are fluent with my system to help with assisting other traders. I am only one man and it is difficult for me to answer all the questions and post everything I do. In the end this really needs to be a group effort. My ultimate goal here is to get as many traders as I can trading based purely on price action. Other may call this "naked trading". The expert rules can be described as trading with no indicators and only TLs. This is why there is not point in adding to my system or changing it because everything there has a greater pupose. That is all for now.

FJ

Aye, aye, Captain!

I like that FJ... all of it. And I am happy (for the purposes of our learning and growth) that you are taking these steps.

Can't wait to learn more, from you and the rest of our community.

Cheers http://www.forexfactory.com/images/icons/icon10.gif
Ezzy

Below are the rules for trading the forece expert. I have used Friday as an example chart to demonstrate the rules in effect. This is the best way to maximize your pips gain and the final goal that everyone should strive for when trading my system from beginning to end.

Trade setup

You will draw one long term TL upper and lower TL fomr the 15min chart zoomed as far out as possible. Just connect the two most highs and lows visible. Then go back to your 5min chart as this is the only place the trades will take place. Find a comfortable zoom level but not to close because you need to be able to see the bigger picture.

Enter short

Wait for the price to push then bounce or just bounce of the Upper TL
Wait for retracement and failed restes of the upper TL
Enter short after failed retest
Trace price with short term TL and add to position on bounces of short term TL
Close all when the same thing happens in the opposing when the same pattern happens again but opposite.

Enter Long

Wait for the price to push then bounce or just bounce of the Lower TL
Wait for retracement and failed restes of the Lower TL
Enter long after failed retest
Trace price with short term TL and add to position on bounces of short term TL
Close all when the same thing happens in the opposing when the same pattern happens again but opposite.

Thats it. If this doesnt make sense to you your not at the point where your ready to trade the expert rules. The basic and advanced rules are created to train your eye to recognise these patters. The chart below is how I trade FX begind the scenes. From now on This is what my charts will look like when I post them. I hope everyone enjoys the feeling of satisfaction they will have for themself getting to the point where they can trade in this fassion.

FJ

Bravo! This is just what I needed to clear up my confusion.


This is without a doubt the best system for confidence building I have seen.

Many thanks FJ.

Joel

Ok here is a quick bit of advice on money management vs proper stop loss. Basically youve decided that your only going to risk a small 1% of your equity per trade. This is a great idea and will minimise your losses should you have one. The truth is that good money management will mean nothing if you dont place a stop loss in the correct position. It will only turn your equity draw down into a slow leek. It is important that a stop loss is placed in a logical place or else it will get hit and you will take a loss. A stop should be placed below strong support and above solid resistance. To pick a ficticious number for your stop loss will only hurt your trading and cause a huge drawdown on your trading confidence when all you had to do in the first place was know your support and resistance and place your stop there. This means that if your stop loss needs to be placed a fair distance from the the open of your position and your only risking 1% per trade than your gain will be smaller. You will have to accept the fact that this is the way things should work. Afterall this is your future in FX your messing with and this is why we add to our position in the expert rules. Proper stop placement questions can be asked in the Force chat.

FJ

FJ, Thanks for clearing all that up. My chart looked similar to yours however I kept closing the trade on the retraces and re-entering at the next turn. Couple of times before all the signals existed. I had a good feeling the price would continue to fall for quite some time, and it did. Towards the lower/middle of the trend I decided to use a trailing stop @35 and this seemed to work well. Had I truly had a system like yours engrained in my skull, I would have made even better trades, ie; adding to the position and not closing the first positions and re-entering several times. I think my style at this point is nee-jerk trading.

Thanks again

Bob

I have made a revised risk calculator in xls format. Whats new? The details are listed below.

-Calculates lot size to trade based at 1% only
-Calculates how much of your existing lot to close in a proper take profit %
-Calculates Total equity gain in % and $ automaticaly
-Calculates Risk Reward in real time as data in inputed in the proper fields.

Instruction on how to use the Calculator Plus are located inside the file. Lastly lot size is determined by the type of account you have. Micro account= Micro lots, Mini account=Mini Lots, Standard account=Standard Lots so there no need to change any formulas.

FJ

Hi everybody,

I am still chugging happily away at the Basic level, but finding that checking the data values using the MT4 data window and cursor is quite a cumbersome process. My eyes also find the font size slightly on the small size, (what with my eyes not being under 30 years old anymore), so to facilitate the process I have programmed myself something that puts the data values where I can see them more easily. Here is also where I will state that this is my first attempt at programming in MT4. This exercise is an adaptation of the first lesson in the MT4 tutorial on line, which is essentially "MT4 Programming for Dummies".

It is pretty self explanatory. The top line is the values for the current bar. The bottom line is the values for the Signal bar as described in post 1. Times are in blue on the right. Mouseover tells you which of FJ's basic indicators they refer to. The numbers go green when they are in the bullish phase, and red when they are in the bearish phase. So when the numbers on the top line all go green, a bullish signal is in the process of forming. Then when the candle completes, the numbers all transfer to the bottom line to show the values of the completed signal candle. It is the bottom line that confirms the phase of the completed candle and, together with other factors, such as the candle closing "bull" and most important of all, where the pattern is occurring, that sets up the trigger pattern.

However, what is apparent from watching the progression of price over the last week, is that just because the indicators line up, does not mean that a trade should be taken. Taking every trade in this way will DECIMATE your account. This sequence is only a "trigger pattern" or a "set up". It is not a system. There are many trigger patterns in forex trading. Common ones are "taking a trade as price passes the low/high of a 1-2-3 pattern", another is "taking the break of a pin bar", another is "trade as the MACD signal crosses the MACD histogram", another is "taking the break of an inside bar". More esoteric "trigger patterns" are "taking a trade when the moon and planets are in alignment, and the tide is on the way out" and another is "taking a trade if a black cat walks past my window".

The system itself is in between your ears. Other elements of a system are "picking a good entry location", "sizing the position by money management", "scaling out" , "adding to a position", "closing the trade" etc.

Do not confuse a "trigger pattern" with a "system".

But I digress. The point of this post is to help others like me who have difficulty in seeing the information in the data window, by making the numbers bigger and putting them on the chart in a way that also does not involve manipulating the mouse. Hope this helps....

Roy

Well said and done FJ. It really helps to clear the confusion and doubts of some of the traders using this system.

This system is simple enough and practiced consistently following the rules will definitely make us become better traders.

Traders using this system please post your results in this thread, dun neglect this thread because of the chatroom. There are many traders out there not having the privilege to access the chatroom atm.

Good Job to everyone for working together (those that help build the chatroom, programmers and pro traders in giving insight and advice for the newbies) in making this system "THE" system. The Force is Awesome with all of you! TQ.

Royston,

Fantastic post! Thank you for your contribution to assist others in their success. Im sure many people will appreciate this indicator.

FJ

Ya interesting piece of indicator to go with the Force and it fits nicely in the chart.
Will definitely try it out next week. Thanks Royston!