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5Min Intraday System

  • #7,021
  • Jun 27, 2010 4:09pm Jun 27, 2010 4:09pm
Quoting Golfer
Hi Adrian

Just remember this is a Trend Continuous (TC) system and not an Counter Trend (CT) system.

There are opportunities to trade CT setups but those are more profitable in choppy and range bound markets. The CT trades are killers when taken in trending market conditions.

So how do you decide which market condition is on? Especially very early in a move. Always very easy to comment afterwards when the entire chart is visible.

That I why I'll stay with my significant levels and small intra-day trendline to guide my trading.
Hey Willem..

Thank you for getting back to me on this and explaining things on my thoughts...much appreciated!

Adrian
  • #7,022
  • Jun 27, 2010 5:50pm Jun 27, 2010 5:50pm
Quoting aarangio
Oh wow!,

thanks for all the help and explainations again Willem!

Willem I just wanted to bring up this post again that you wrote as it actually turned on a switch with me and opened my eyes big time and I feel people should look at this attachment on PA candles forming off the MA's and I mean look at it and absorb and get it as it is gold...very important I feel!!

http://www.forexfactory.com/showpost...postcount=2766

Cheers for your help!

Adrian
Hi Golfer, Adrian,
Would like to double check something real quick, I am sure the answer is somewhere in the system description, but what I have in my head now is more or less a mess, and I am surely going to re-read the whole thing, but in the meantime:
Do I get it right that the power bar referred to many times here is a long candle that might have advanced to the 50 sma somehwere between 10 and 21 emas, but closed in the direction ofthe 50 sma's slope (ideally below/above 10 ema)?

Thanks Golfer for being our Good Samaritan
  • #7,023
  • Jun 28, 2010 7:29am Jun 28, 2010 7:29am
Quoting MidnightRun
Hi Golfer, Adrian,
Would like to double check something real quick, I am sure the answer is somewhere in the system description, but what I have in my head now is more or less a mess, and I am surely going to re-read the whole thing, but in the meantime:
Do I get it right that the power bar referred to many times here is a long candle that might have advanced to the 50 sma somehwere between 10 and 21 emas, but closed in the direction ofthe 50 sma's slope (ideally below/above 10 ema)?

Thanks Golfer for being our Good Samaritan
Hi M

I'll post a few charts later today as examples
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,024
  • Jun 28, 2010 11:00am Jun 28, 2010 11:00am
A setup I was looking at but I didn't really work out. Bulls are still too strong.

But what I am trying to show you people is the big red (bearish candle) moving downward after the tail of the previous bearish candle tested my significant level.

Look at the various types of entries that you can use - the one in the black rectangle the high risk entry. SL could have been just above my pink significant level.
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,025
  • Jun 28, 2010 11:07am Jun 28, 2010 11:07am
Now lets look at a live chart and just as I saved the chart, that should have been my entry. But it was a bit too far from my significant level. But that side way movement indicated that the price doesn't know what to do.

The pink line indicated what I was looking for - forming the 3rd sister.

An entry where the price was during the save of the chart would have resulted in a nice 10pips SL (just above pink significant line). TP could have been 10-15pips.
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,026
  • Jun 28, 2010 11:15am Jun 28, 2010 11:15am
I didn't enter in the war zone - which is the place to enter so that you can be close to your "escape" area and minimise your risk (your SL). Look at the previous chart and now my entry - almost 10pips difference and for this system, it is important.

The entry for this system is crucial.
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,027
  • Jun 28, 2010 11:22am Jun 28, 2010 11:22am
And then my exit for -7pips after I saw my small intra-day trendline was broken.

What happens afterwards - the bears won!
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,028
  • Jul 6, 2010 11:01pm Jul 6, 2010 11:01pm
Hi Golfer,

Thank you for your posts about the 5Min chart trade which are very helpful to nebiews like me.

When I did the demo trading, I found if I set SL to 20-30 pips, 5 out of 10 times, SL was hit and I ended up lossing. What is your normal SL?

Best regards
Fafa
  • #7,029
  • Jul 14, 2010 7:35am Jul 14, 2010 7:35am
Quoting Fafa
Hi Golfer,

Thank you for your posts about the 5Min chart trade which are very helpful to nebiews like me.

When I did the demo trading, I found if I set SL to 20-30 pips, 5 out of 10 times, SL was hit and I ended up lossing. What is your normal SL?

Best regards
Fafa
Hi Fafa

It depends on the type of setup - it differs from 10 to 50pips

Like I said before, yes - there are many setups to be found because it is a 5min system. Nowadays I only enter a setup when there is a clear significant level (previous support and resistance indicated by previous swing high/low or consolidation) involved in the setup. That is why I tend to ignore the indicators at this stage.

I'll try and find a few examples to post on this thread.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,030
  • Jul 14, 2010 7:54am Jul 14, 2010 7:54am
This is how I draw my significant levels - an example of yesterday's chart. Just link the top or bottoms of waves (yellow circles) with each others (pink lines) and you will immediately see where the significant levels are.

That is why I only keep the initial indicators suggested by Phillip and then I look at price actions near the significant levels and if the indicators are in the correct position.
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,031
  • Jul 14, 2010 8:10am Jul 14, 2010 8:10am
This is how I would have traded yesterday's chart - only 1 setup was near my significant levels - acted as resistance with my SL above that level and in this case, above previous candle High and possible above the 21MA. I think it is about 15pips. The TP should have been just above the previous swing low (which indicated support was found) just in case the price wants to bounce off that level again.
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,032
  • Jul 14, 2010 11:41am Jul 14, 2010 11:41am
Hi Oka,

Hopefully this will help clarify things for you. What is meant by wait for the price to retrace is that when you have decided on the direction you are going to trade (based in this instance on the slope/direction of the 50 sma), you wait for the price to come back to the 10 & 21 emas. What people usually do is look for a good signal in the tunnel area or gap formed between the 10 ema and the 21 ema.

Hpe this helps
  • #7,033
  • Jul 15, 2010 2:17pm Jul 15, 2010 2:17pm
Quoting zofo44
Hi Oka,

Hopefully this will help clarify things for you. What is meant by wait for the price to retrace is that when you have decided on the direction you are going to trade (based in this instance on the slope/direction of the 50 sma), you wait for the price to come back to the 10 & 21 emas. What people usually do is look for a good signal in the tunnel area or gap formed between the 10 ema and the 21 ema.

Hpe this helps
Hi Zo

Perfect, that is how this system should be traded/used. I just have one problem with it and that is that there are too many setups that do trigger your SLs. That is why I am now looking at the setups near my significant levels and only trade those pullbacks (pullbacks into the war zone/near war zone with my significants levels very close by).

I hope it make sense.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,034
  • Jul 15, 2010 11:13pm Jul 15, 2010 11:13pm
Hi Golfer.

Thank you so much for your reply. It is really helpful to me.

With this 5min trading system, Is it critical that one can only trade with the trend, either up or down?

In you last email, you mentioned "That is why I am now looking at the setups near my significant levels and only trade those pullbacks (pullbacks into the war zone/near war zone with my significants levels very close by)". I am not clear what you mean by "The setups near my significant levels".

Could you please post a setup that you took and was near the significant levels? Thank you!!

Another question: If the pullback go through the war zone and even through the 50 SMA, do you wait for the price to go back to war zone befefore making the entry?


Kind regards

Fafa
  • #7,035
  • Jul 16, 2010 5:53am Jul 16, 2010 5:53am
Quoting Fafa
Hi Golfer.

Thank you so much for your reply. It is really helpful to me.

With this 5min trading system, Is it critical that one can only trade with the trend, either up or down?

In you last email, you mentioned "That is why I am now looking at the setups near my significant levels and only trade those pullbacks (pullbacks into the war zone/near war zone with my significants levels very close by)". I am not clear what you mean by "The setups near my significant levels".

Could you please post a...
Hi F

I did post a chart with a setup (the first setup) near my significant level (pink line) - post #7031. The rest of the setups were not considered.

I'll see if I can find some other setups.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,036
  • Jul 16, 2010 1:17pm Jul 16, 2010 1:17pm
A part of a pm I've received and my answer. I think it would benefit others and answer some questions:

A part of a pm I've received from a fellow member (thanks for the pm):
It seems to me you are moving towards naked trading. As you said you enjoy good profit factor using Philips Nel's original system, why do you move on?

My answers:
No, not really naked trading. Just concentrating heavily on price action and then using indicators to confirm my entry.

I've read a lot about price action and that price is influence by human actions and re-actions (emosions). AND not influence by indicators.

Moving away from Phillip's system - yes and no. Yes = just getting rid of the extra indicators. Moving back to how it was traded initally. Just working on a new earlier entry (what is a called High/Low entry). No = still use the principles teached by Phillip.

Profit factor - no, at this stage I don't analise the trade so accuarate anymore. I also playing around with higher time frames on the same account

Main reason for changing - Too many false signals if you just look at the indicators. I wanted to trade s Phillip initally traded the system. All about the movement of the price around the moving averages. What I realised was that the price do react around some levels - maybe it could be useful in this system

Moving on - yes, I do have trouble with my trading times and the opportunity to look for setps. Reason to look at the higher time frames and not just sitting in front of my screen. Nothing to do with the system - if I only had the time to trade.

I hope it helps clarify it somehow.
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,037
  • Jul 18, 2010 10:29pm Jul 18, 2010 10:29pm
Hi Golfer,

Have you posted your new entry system: High/Low entry somewhere in this thread? if yes, which post?

If not, could you please explain what it is. Thank you!

You mentioned in you last post that you removed some indicators but kept the original ones. What indicators you are still using now? I only see moving averages in your previous post.

Thank you again for your help.

Best regards
Fafa
  • #7,038
  • Jul 20, 2010 11:54am Jul 20, 2010 11:54am
Quoting Fafa
Hi Golfer,

Have you posted your new entry system: High/Low entry somewhere in this thread? if yes, which post?

If not, could you please explain what it is. Thank you!

You mentioned in you last post that you removed some indicators but kept the original ones. What indicators you are still using now? I only see moving averages in your previous post.

Thank you again for your help.

Best regards
Fafa

Hi F

No, the High/Low entry method was not yet discussed on this thread. Examples and explanations to follow.

If you look on the first page and look at Phillip's first few posts, you'll see that he used only the 3 MAs (10, 21 and 50). All the other indicators were add-on(s). I only now realise that those indicators were added because members didn't follow the market rhythm and Phillip wanted to make trading easier.

So, I've moved back to the original system with mimimal indicators while concentrating more on price action / market rhythm.

Hope it helps
Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,039
  • Jul 20, 2010 12:01pm Jul 20, 2010 12:01pm
This is how I am currently trying to enter using this system.

Let us look at the 5min EURO chart of today:

First there is a strong strong move downwards after price tried to break the 1.3000 level. Then I do start to draw my small intraday trendlines and significant levels (not very clear today because the market moved too fast).

I do expect the price to re-act when it reaches these levels (indicated by previous price actions (swing highs and lows as well as candle/pattern formations.
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
  • #7,040
  • Jul 20, 2010 12:06pm Jul 20, 2010 12:06pm
Secondly I look at the market rhythm between the levels (levels not indicated)

I do wait for a nice pullback towards the war zone as indicated on the charts. I do follow the pullback closely (see next post).

Then I would like to see some resistance near war zone - in this instance it was found near 21MA and just past my small intra-day trendline (not indicated on this chart - look at previous chart).
Attached Image (click to enlarge)
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Willem Forex recipe for success = Patience, discipline & hard work.
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