1 minute momentum scalping

I have put almost all of the trades from this thread up on youtube. The beginning videos are different than the new ones. You can go here to my youtube channel to quickly find my most recent trade.

Chart Setup

 

1. 5m candlestick chart with 5 and 12 EMAs, RSI (20)
2. 1m Heiken Ashi with 8, 21EMAs, 50 SMA
3. 30s Heiken Ashi with 8 and 21 EMAs

Rules/Sequence of Events

Enter with 5M trend. The trend is defined by the MAs and RSI below 50.
1) Strong move
2) Retrace apparent on 1M
3) Momentum resumes
4) Hidden Retrace (only shows on 30S)
5) Enter on break of first 30s candle resuming the color of the momentum
6) SL = 5
7) Exit half at 5 pips profit, SL to breakeven

Notes

Days that don't have any important news can range, and ranges are not good for this method.

Only take trades between 8:00 AM and 12:00 PM EST.

Be careful before important news, always know when it's coming.

The rules have changed a lot, but I have documented all of my moves so you can see how I arrived at the current rules.

http://www.forexfactory.com/attachme...5&d=1281014907

http://www.forexfactory.com/attachme...7&d=1281020968


http://www.forexfactory.com/attachme...8&d=1280838044

Here are a couple from today

Forgot to mention I only trade eur/usd

Also, since I am new to scalping I am using micro lots, and so should anyone who doesn't have a proven track record with their currency and time frame!

On the first picture, you can see that there was an entry 6 candles before the entry shown. I took that one too for the record.

Whats been your success rate with this system. Mind posting a template.

here is a trade from a few minutes ago

i closed at BE after a few candles because of the red candle closes

in addition to that, the time of the trade was more than an hour and a half past my preferred hours. in a situation like that i can't really say i should have stayed in. it would have been alright though.

hey buddy

my success rate is very tough to say. i have not been trading this exclusively. i developed this 1M chart as a filter for a previous 5sec system, but found this "filter" to be a much more profitable system.

we will see over time what kind of success rate this method has. i won't be cherry picking the trades i will be posting on here.

if you mean mt4 template, sorry pal can't help ya i use oanda.

thanks for checking out my thread

heres another that just happened a second ago

i did not take is because of my "preferred trading hours"

if you took it, your stop would be at BE though

Some traders here on FF claim that it is not entry that is important but exit. And I also believe in that.

I'm not really sure what do you mean when saying:

Can you be more specific? What do you mean by ' a couble of candles '?

Does it mean that actually you exit your trades manually?

Cheers
C.

hey casper

thank you for your comment.

i'm not here to say if one element is more important than the other.

an example of a "couple of candles" is posted in post 6 where after a couple of candles, a candle closed with the opposing color. i closed the position. after this it became evident that i would have been fine, but it was late in the day.

this is a part of my method that i would love to optimize

however in addition to this method of exit there are a few others:

i get stopped out for an 8 pip loss
i get stopped out at break even
i closed the trade because after a couple candles price crossed the 8 EMA
my TP was hit at 16 pips
if my TP is on the other side of R1 for example, i will take profits at or just before r1


i hope that i have cleared that up

one more note on a couple: a couple, to me, is between 2 and 5. this is a discretionary part of this method. will that change in the future? that depends on what happens next.

edit:

tomorrow we have the ECB thing and unemployment i believe. i think that that's at 7:30. if thats all true then i will have a couple videos posted by this time tomorrow.

and i forgot to answer your question -- yes i close my trades manually in the event that the candle closes in an opposing color or it crosses the 8 ema. i'll demonstrate this in my videos. in oanda you can click on your position and it has a pop-up window that asks if you want to close your trade. after i enter my position i click this so the pop up window is up. all i have to do to close the position is click ok

Thanks for sharing, Cant get my head round the entry tho, can you post a chart and label it with the set up... look forward to the video and more examples of trades your taking..

Danny

Nasty price action this morning. I have been recording what i've been up to.

Hope things look prettier later.

hey pal

absolutely!

thanks i'll do my best to make a quality presentation that is honest and representative of what i'm trying to do, no cherry picking i promise! in fact i already have a scratch trade to show off lol

wow guys i had the wrong pivots plotted

i used oanda's pivot point tool, and it was way off and i just paid for it. after plotting the pivot points, i see that my long entry on my last trade was directly under R1. oanda's R1 wasn't even in sight! my rules clearly say that i can't trade into a pivot level.

ok enough ranting gotta fogett aboutt itt

edit:

here are two trades from today. straight into R1!

i have oanda's pivots plotted on there as well as the correct ones. the correct ones are white, and oanda's are nowhere in sight!

finally price starts looking more attractive!

price gets prettier around 9:45-10 for this i've noticed

is it because of equity markets opening at 9:30?

by pretty i mean when price moves it moves in long rows of red/white candles instead of switching back and forth.

you will see what i mean in the vids

edit:

i thought price was starting to look really nice but today has proven to be an ugly one so far. my favorite hours are almost through, after more than three hours we have been in a 40 pip range around R2. not the best day to kick of my vids but mama said there'd be days like these, there be days like this, my mama said

we have been going sideways around R2

worst possible conditions for this method

unless possibly i change my SL and TP to 4 or 5 for 1:1 on days like these

but you don't really know if it's gonna chop or fly like a rocket

maybe since yesterday was such a nice day, today can be expected to be a contraction period where price takes a breather. maybe after days like this i should get ready for some rocket days

either way i have a bunch of video clips and i'll start putting them together. i'll keep an eye out to see if we start moving today but it's getting late.

edit:

it's now 12:15, and since 8 am (EST) price has been in a 50 pip range. not the best conditions for a trend following method!

i am currently working on getting this video together

it's taking much longer than expected because i have to sort through lots and lots of video to get the parts i want.

i have to go now because i have life things to do, but i promise to do my best to have the vids up before the end of the day.

I will be adding lots of examples and refining the rules tonight if I have time.

This was a horrible day of trading on my behalf.

But I refuse to cherrypick so here are 9 trades from today.

I had lots of commentary but i accidentally deleted lots of it and was frustrated and re did it hastily.

Many of the trades in this video should be considered how not to trade this system. I really wanted to have trades to record so I got stupid. When I started this method It was built around the Idea of an impulse move and a corrective move, and simple tools to help me gauge the strength of the move as well as the appropriate time to enter and exit. This video doesn't really reflect that, and I regret that. Sorry my first vid couldn't be better!

I appreciated the efforts you put into the video. I had a little trouble following along as to where the exact entries and exits were and why at each spot but I hope you keep doing this for a while. I have been trying to trade along the same lines for some time now, but found the congestion areas to be hard to recognize until after a loss or two. Your use of the HA is an interesting and hopefully useful addition.

I'm only taking the pretty ones today.

Here is one that I passed on because of how close it was to S1, and it was riskier because it hadn't retraced past the 8 EMA

Edit:

just wanted to make a note of the fact that this took place at NY open and price had just made an impulse move away from the pivot that was greater than 20 pips and was not cut in half by the pivot. maybe under these circumstances the risk associated with not having retraced very far is worth it.

It's easier for me to make multiple videos instead of trying to put them all together into one so here's my first trade of the day.

Price had broken away from the daily pivot at the NY open and broken S1. Then there was our trigger. Price pierced the 8 EMA a little bit. Itfelt risky to take this trade because the last move didn't break the 8 EMA on the retrace.



haha just watched that vid because i'm waiting for the next attractive move. the timing and content of the commentary is a little of haha but i was trading and its tough to do edit and put together clips and stuff while youre trading the 1m
-- oh i see my commentaries were switched... lol just switch em when you watch it .. haha if you can

I put up macd recently because when price is acting very beautiful, the histogram will turn red on the candle before our entry candle.

I developed this entry method on the 5 sec and macd even does it there.

But only when price is very pretty.