Mrs V's fave 1 min entry

Thanks V...I'm getting it
Steve

Hi V,

Here is the trade. In hindsight, I can see that it was not a trade as per system.

1. The confirming 5 min candle had not closed and been passed upwards.
2. The trade was taken on the basis of a down trend line broken by a good thrust bar on the 1 min, with the signal and 34 ema only as incidental factors. A clear (in hindsight..) case of wishful thinking.

Looking at this afterwards a few things strike me.

1. First, the trade must look "right" on the 5 min chart. In this case, the 5 min had not made a confirmed HL. I take this now to be a 3 bar pattern, and the pattern is only complete when the third bar high has been broken.
2. Start with one setup, and then wait for all the criteria to be present. In other words, you have to wait for the trade with your name on it.


A question - Do you bail out of trades before the stop is hit, or do you generally let them run to stop?

Royston - a great analysis of a losing trade (had a few of those myself, but less and less as I understand V's system better.)

I have been meaning to commend you for the indicators you coded - excellent work, thank you.

Hi Royston

Nice analysis. I keep a record of causes of trade failures, right at the top is don't take direction from a 1 min chart.

The hl/lh set ups are in my humble opinion crucial to determine trend. Of course you get some moves where price just turns and runs, but there are so many hl/lh trades that have high prob of success that its worth waiting for. Its always best to get in on 1st trade after the 5 min hl/lh as every move on from there obviously increases the risk of failure.

When I look at 1st trade the 5 min criteria must all be present, its only on re-entry that I'll focus more on 1 min. Even then I don't ignore 5 min, if 5 min has given a couple of reasons not to trade (high vol reversal hammer, stoch wrong, divergence) I'll avoid trade on 1 min. If theres 2 or more 5 min reasons not to take trade I'll leave. I do want pips in the bank from 1st trade though.

What we do know is gu and ej wil typically have 150 odd pips, or more, moves in a day, the trick is to try and be in on smaller moves waiting for the bigger ones to happen.

On stops, if I've clearly made a mistake or price has a good few moves up/down and doesn't go I have no problem getting out as usually another trade is not that far away.

Mrs V is feeling much better today so we are going on leave, will be back on Mon 8 June. Best of luck with the trading, cheers.

I'll 2nd that, thanks.

Great post Mr. V:
I keep learning a valuable nugget every time you post. Will miss you while away. Enjoy your trip with Mrs. V. I have So. African trader friends who have been to the resort you are going to enjoy.


Steve

This method works so someone needs to keep posting while Mr. and Mrs. V are vacationing.

Here's the GBP/USD trades I analysed. I didn't take these trades; instead held a loser resulting in missing these opportunities.

The Euro/USD also had even better price action during NY am session.

The Euro/JPY started with a 1h engulfing pattern suggesting shorts then a pinbar suggesting longs; result was chop chop with lots of 20 pip trades up and down. This is hard to exit fast enough and I got caught in one. If I'd traded Gu or Eu I'd likely be a winner today.

Gbp/Usd analysis is posted as discipline for me to trade better next week.

If psychology is 95% of trading I have alot of work to do managing my money. It seems simple but its hard.

Since most trades make 10 pips or more, I am thinking of moving my initial stoploss to +10 pips as soon as it makes it and holding it till sl= +10 or my target is hit using Mr. & Mrs. V's target ideas.

Anyway, I am pleased with my method. But its only 5% of trading.

Hindsight is so easy to see the trades.

God bless you and good luck with your trades.

Steve

Hi Steve. I love this strategy and thanks for your post. While Mr and Mrs V. are in Crystal Springs I'd be happy to post some of my own trades, but I haven't a clue how to do that. Can you tell me how please - maybe by PM so we don't clutter up this thread. Thanks.

Here's a trade I took just after Frankfurt opened. there was a H/L on the 5 min, confirmed by the 09:10 bar and I entered on the break of the 09:16 bar on the 1 min chart. I was a bit worried by the size of the 5 min bar (24 pips) and because it was Frankies Hour I decided to exit with +8 pips.

Steve - thanks for your help. I should have been trading G/U, especially as the E/J candles are all a bit weird, probably because of all of the European bank holidays. Now that I am getting the hang of this strategy think I'll try and watch 2 pairs at once.

As Mr & MrsV are on vacation, I hope they will not mind me posting one of my own charts.....naked in that I dont use any indicators except a couple of MAs - the aqua is a 150 EMA and the yellow a 50 Hull MA.

I trade by looking at Price Action in relation to these MAs AND the levels - both sweet spots and daily pivots.

The lower high before FO - the white time line - was a confirmed sell as it held under the 6225 level and the 150 EMA a nice ~40 pip drop. As it was Frankies Hour, buy for the retrace and sell again off the 225 level for a hit and run 10 pips down to the 200 level......which then became a Higher Low, alerting me to a probable rally.....I bought the break of the 225 level and have taken profits and re-entered longs.

Now at the 6375 level, price is overbought and I've just closed out and will watch what happens next.....

Islander - I am sure V. won't mind your post. I know I don't, because I learn something from you each time. You have a wonderful ability to read price action - think I'll take some time and read all your posts in the other thread. Cheers.

Thanks orientos - glad that you find my posts helpful.

Cable managed to put on another 50 pips to spike up to 6425.....remembering that the UK Manufacturing data is due in 5 mins, I'm wondering if this mornings +250 pip rally is a "buy the rumour, sell the news" type of move......Time Will Tell......http://www.forexfactory.com/images/icons/icon12.gif

http://www.forexfactory.com/images/m...dar_upnext.gif 4:30am GBP
Manufacturing PMI http://www.forexfactory.com/images/m...etail_star.gif 45.4 vs 44.1 expected




a good number, so I wonder how many had inside info?.......cable's rally has been helped by the dollar's weakness - the Swissy has made new lows.....

Thanks Guy's, this is a very good system. I have a couple of questions
if you don't mind.

1). How does the traffic signal work? For example when you get the
little bars instead of the larger bars does that mean a continuation of
the trend? How accurate of a indicator is it? Can you trust the
indicator with your life?

2). Can a person just watch and trade the 5 minute chart with this
system and not really watch the 1 minute chart at all? I'am an
old guy and the 1 minute chart is very fast and difficult to
trade for me.

Thanks for all your help!

snarlyjack

hi jack,
The traffic lights are a shortcut way to indicate that Vantage's three indicator conditions all line up in the same direction. For a long, this means

 

1. RSI and moving average is crossed upwards
2. Stoch is crossed upwards
3. MACD is higher than previous bar's value.

It is meant to take the effort out of continually looking at 3 indicators. You still need to decide whether to take the trade or not. You will see from Vatage's posts, that he has the traffic lights and all 3 indicators on his chart at the same time. The little bars are there so that it makes it easier to count back. They are not an indication of trend. If a signal occurred 2 bars ago, without the little bars you need to get your cursor on the bar to see when it happened. With the little bars, you can see it was 2 bars ago, without having to reach for your cursor.

As far trading the 5 min chart, I do not have an answer for that question.

Here's an example of a good trade ( which I missed) as I don't usually start trading until FO. Think I will follow Islanders advice and start trading about 30 mins before FO in future. The dotted yellow line is when all the entry conditions are met - firstly on the 5 min and then 4 mins later on the 1 min. I probably would have exited on the round number for about 15/18 pips, and there was a re-entry on the 1 min chart a bit later.

There was an equally good trade on E/J at about the same time.

Some nice trades in this morning's choppy session - great reactions to the levels.....

LOL.....here's the chart.....

I wasn't able to trade last Friday, but did trade live for the previous 6 days. Every day was profitable , although not a lot of pips, as I only traded the first 2 hours of the European session. Also, I did not take any re-entries, which would have resulted in many more pips as there were some very strong trends. And, as usual, I exited too early most times and left a lot of dollars on the table. But pips are pips and I did not have a losing trade.

Looking forward to trading this strategy this week and I trust Mr and Mrs V. have safely returned from their vacation.