Effective 5M intraday trading

Hello, Traders!

Sorry for not posting anything today - we didn't have any entries according to the system during our timing. There was a good entry during Tokyo. (See the pic.)

In the following post I'm going to describe pullback entry rules, so even though initial entry is missed we could still have an opportunity to enter the market.

Regards,
snu.

Additional entries we're going to consider will be trend pullback entries.

I advice to utilize the same checklist approach as with our primary entries here.

Entry prerequisites:

1. Prior trend: Since these are trend pullback entries, the main thing we need here is a trend. The rules for spotting the trend are the following: If 20 EMA > 50 EMA and both sloping up and MACD > 0 the trend is up. IF 20 EMA < 50 EMA and MACD < 0 then the trend is down.
2. The pullback: The pullback is considered to be valid when the Stochastic indicator goes above/below the 50 lvl. Also it is important to look for hidden divergence on the indicator. Hidden divergence tells us that trend is most likely to continue in our direction. No hidden divergence - no trade, remember this!
3. Pullback depth: When analizing the pullback it is important to see that it retraces to some sort of S/R lvl. So allways use additional tools, such as fib retracement lvls, trend lines, moving averages and S/R lvl indicators to spot potential areas of where price is most likely to go.
4. Price action: Price action is another aid to anticipate the end of a pullback. Wait for a period of consolidation on the pullback end - look for inside bars.
5. Risk/Reward ratio: Before even considering the entry, calculate if risk to reward ratio is acceptable. I advice to use minimum 2:1 ratio. This means that your potential profit has to be at least 2 times greater than the amount of pips you're risking.

Entry:

When all the prerequisites apply enter market either on the break of an IB, or wait for a price to close above 5 EMA and enter on the break of that candle.
Place your SL few pips above/below the pullback lvl. Place your target at the nearest fib extension or some sort of S/R lvl.

Example:

Let's consider today's example of long entry on EU. (see attached pic.)

1. MACD > 0 and 20 EMA > 50 EMA and both were sloping up - the trend is up!
2. There was a hidden divergence on Stochastics.
3. Price retraced to the 20 EMA and to the trend line.
4. IB formed at the end of a pullback.
5. As seen from the setup we risk about 20 pips and our potential target is 40 pips away from the entry point, so the R/R ratio is acceptable.
5. Enter on the break of the bar which closed above the 5 EMA.

One more thing worth mentioning:

Its important to understand, that market never plays by your rules, so you have to play by its rules. This means that one time price might retrace to 20 EMA, another time it might retrace to 50 EMA or a trendline, next time it might do a completely different thing. The point is - you never know! Thats why you have to be creative and keep in mind all the possibilities. I believe this to be the trickiest part in trading, but once you're good with it, you won't be missing any trade opportunities! This is something to work towards for everybody, and this is one of the reasons I run this thread - so people could come here, and share with others what they see. This way we could grow towards becoming better traders together!

Cheers and happy trading, all!

Regards,

snu.

With start of our afternoon session looks like we have a H&S with the small one inside the right shoulder. I would wait for the break of bigger TL and then look for an entry. Any thoughts?

EU short Entry.

EP 1.2273 - on the return move after the consolidation breakout (blue box on the chart). This is early experimental entry
TP 1.2195 - 261 fib extension.
SL 1.2293 - 20 pips

Regards,

snu.

Early entry trade closed @ BE! So i reentered According to rules.

Ideally entry should've been @ 1.2262 - on the break of IB, but because of my broker spreading i could only enter @ 1.2254.

Now position is @ BE

Regards,

snu

Again market closed me @ BE!

I guess I'm adjusting my SL too soon.

regards,

snu.

yep strange days
im traped at one short but i still belive in it

You mean you shorted and the market went up, and now you're trying to overwait it?

yep i had some biig lag and seel to late - i must change my ISP
but ist ok now closed with +5

Where it will go?

Hey guys!
EP - 1,2265
SL - 1,2285
TP - 1,2190 (10 pp above KG)

Now, i moved my sl to BE.

I don't know But I'm more down biased in mind.

Draw TLs and Wait for price to break them and retest then you'll know.

Something like this I would say.

Regards,

snu.

Me too, so I didn't take this trade. Maybe better trade charts then minde?

Exactly, trade what you see, not what you expect.

it went up i knew - very strong div and it was time to stoch cross on h1 ;D
+50

GJ!

Plz post the pic showing the trade, so we can all learn from you!

Regards,

snu.

i took it on m15 strong div on stoch tested twice !
i sow this trendlines but i decided that if will be strong fight at cross point of this down trendline i will close with +30 manualy but it hit my tp with no problem

and im testing some indi called zerolagmacd from this thread
http://www.forexfactory.com/showthre...30#post3758530 posted in attachments

on normal macd on m5 there was no div but on this zerolag it was! marked on m5 chart

i will test it for a while

Thx for the info bbolss!

Good entry indeed!

Regards,

snu.

whad do you think snusnufreak about this zerolag macd
when i look at history it looks realy realy nice ?

It definitely looks good! Will experiment with it to see how it works