How to read 5 min chart? | Forex Factory

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How to read 5 min chart?

  • #1
  • First Post: Dec 21, 2008 2:03pm Dec 21, 2008 2:03pm
Can anybody please guide as how to read 5min rainbow chart for a short term profit?
  • #2
  • Dec 21, 2008 2:08pm Dec 21, 2008 2:08pm
Quoting technoware
Can anybody please guide as how to read 5min rainbow chart for a short term profit?
I think that 5 minute charts are too short term, or just too noisy.

But maybe a more experienced trader than me can supply a better answer...
  • #3
  • Dec 21, 2008 2:48pm Dec 21, 2008 2:48pm
Quoting technoware
Can anybody please guide as how to read 5min rainbow chart for a short term profit?
I would not bother trying to start out on the 5 minute chart if you are new to forex.
  • #4
  • Dec 21, 2008 2:54pm Dec 21, 2008 2:54pm
And use a proper MM.
  • #5
  • Dec 21, 2008 3:34pm Dec 21, 2008 3:34pm
Quoting HipsterPipster
I would not bother trying to start out on the 5 minute chart if you are new to forex.
So where should I start from if I want to make some profit?
  • #6
  • Dec 21, 2008 3:38pm Dec 21, 2008 3:38pm
now i trying to trade on 5 min chart, ! it's difficult
  • #7
  • Dec 21, 2008 3:42pm Dec 21, 2008 3:42pm
what indicators may use 4 some profit, specially on 5min chart?
  • #8
  • Dec 21, 2008 3:51pm Dec 21, 2008 3:51pm
Q. How to read a 5min chart?

A. Very carefully.

lol

Ive not been profitable for any extended amount of time, but while you are learning I suppose it wouldnt hurt to trade a timeframe that flows more.

Trading chop is what drives the majority of wannabe's crazy. People always quote the 'Longer timeframe' line but rarely explaine why. Higher TF/Less chop = Less frustration and better results. Better doesnt neceserely meen Profitable though, that depends on how you trade.

Leon
Living the adventure in my head.
  • #9
  • Dec 21, 2008 5:05pm Dec 21, 2008 5:05pm
Start Trading on a Minimum TF of Daily and plan for a 300pip Drawdown during the Trade.

This will probably reduce the size {or number} of lots you can Trade, therefore reducing your Potential $ Gain OR Loss But, Remember, YOU are just getting started.
  • #10
  • Dec 21, 2008 5:22pm Dec 21, 2008 5:22pm
To the OP,

The Rainbow tends to look alot better looking over past data than it does in real time. It doesnt re-paint obviously, but can still be missleading.

Just something to think about.

GL

Leon
Living the adventure in my head.
  • #11
  • Dec 21, 2008 5:44pm Dec 21, 2008 5:44pm
There is another thread(s) on Cyrox Rainbow.
  • #12
  • Dec 23, 2008 2:31pm Dec 23, 2008 2:31pm
Quoting Bemac
Start Trading on a Minimum TF of Daily and plan for a 300pip Drawdown during the Trade.

This will probably reduce the size {or number} of lots you can Trade, therefore reducing your Potential $ Gain OR Loss But, Remember, YOU are just getting started.

Your advice is appreciated, but still 1 question remains unanswered, as what method should be followed to do an effective and profitable trade. Any recommended expert advisor, any automated robot software, or manual method using what kind of graph?

Thanks in advance..
  • #13
  • Dec 23, 2008 3:23pm Dec 23, 2008 3:23pm
There is not a way to trade a 5M chart, alone, for profit. You might learn how to enter and exit on a 5M chart for profit if you first learn how to trade a higher compression chart (as previously stated in a post above, a Day chart is good, but I like the 4H). If you learn how to trade a higher compression chart, you can then learn how to read a 5M for entry (eg, after the market has reached a support/resistance or a fibo level, when fast and slow Moving Averages cross, etc.). If you insist on the 5M thing, you might as well just mail in your account balance to the nearest real trader and skip the emotional letdowns and frustrations. By the way, learning this trading stuff is only about 1/3 the battle. Learning sound margin management and folding it into a good trading system is very important, too. Then, learning to consistently execute that combined strategy will enable you to consistently make profits. I don't want to be too rough here, but then again, I am not sure where you are in the learning-to-trade cycle. Good luck.
  • #14
  • Dec 23, 2008 4:51pm Dec 23, 2008 4:51pm
Quoting technoware
Your advice is appreciated, but still 1 question remains unanswered, as what method should be followed to do an effective and profitable trade. Any recommended expert advisor, any automated robot software, or manual method using what kind of graph?

Thanks in advance..
My current thoughts are that anyone would find it 'challenging' to solely trade off a 5min chart without any other Info being taken in to consideration. Look at some other timeframes in conjunction with the 5min possibly?

I was always adament I wanted to scalp the markets up untill VERY recently. Since that, I have had a little apithany and everything is going eirily well for me. The best way I could put it is, try to think in Prices/levels rather than following every market turn.

But firstly, you need to want to trade, not just make money. I beleive that to be the truith.

Leon
Living the adventure in my head.
  • #15
  • Dec 24, 2008 1:49am Dec 24, 2008 1:49am
Quoting technoware
Your advice is appreciated, but still 1 question remains unanswered, as what method should be followed to do an effective and profitable trade. Any recommended expert advisor, any automated robot software, or manual method using what kind of graph?

Thanks in advance..
I prefer the manual method, taking a broad look by using the daily charts, and when aiming for making a deal, I dive into the 1 hour charts.

That's how I work...
  • #16
  • Dec 24, 2008 3:02am Dec 24, 2008 3:02am
It is possible to read 5m as well as 1m and trade them on the regular basis. You just have to know what your doing. And if someone cant see the sense behind my words, dont bother to hate. Its Xmas time
  • #17
  • Dec 25, 2008 12:43am Dec 25, 2008 12:43am
Quoting belekas
It is possible to read 5m as well as 1m and trade them on the regular basis. You just have to know what your doing. And if someone cant see the sense behind my words, dont bother to hate. Its Xmas time
In theory you can trade this way, but you have to watch closely. If you like to have your nose attached to the computer screen, go for it!
Merry Christmas and Happy Holidays
  • #18
  • Dec 25, 2008 6:22am Dec 25, 2008 6:22am
My best advice, learn to trade in the higher timeframe charts first.

The lower timeframes are like mayflies, they buzz all over the place without seeming to show any real pattern. From time to time news events will take place that will give them a big swat.

I'm not saying it can't be done (see the 5m 1m concept mentioned above) but the markets need to be "rational" when you try to use smaller timeframes.

However, with the economic turmoil, plenty of news events, news events that aren't even in the calendar (such as the auto-bailout flip-flop) and things like this... you simply need to know a lot more than you'll learn from the 5m.

As a beginner, you'll want to go where the learning is best. After the learning then you can direct your attention to the earning...
nav++
  • #19
  • Dec 25, 2008 7:33am Dec 25, 2008 7:33am
Quoting Yohay
In theory you can trade this way, but you have to watch closely. If you like to have your nose attached to the computer screen, go for it!
Merry Christmas and Happy Holidays
I have a journal so you might want to check it out time to time, but we mainly trade geppy as well as cable and the yen. Scalping 5/15m all the way up or down

Anyway Merry Xmas and a Prosperous New Year
  • #20
  • Dec 25, 2008 12:00pm Dec 25, 2008 12:00pm
surely it makes sense to trade a lower timeframe (once you've been trading for a while) as you can see the price action just as well , you can trade with a smaller stop and you can ride a big trend using intelligent money management
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