5-min PASS (Price Action Scalper System)

First TP hit .. next tp at 14020 (which is 2xSL)

going short

TP set at R1, in my case = 16245

TP1 hit at 16245

Wow, it has been so quiet in here today . I wonder why

People say something

Remeber this afternoon is the 10% challange update, so get your numbers ready to post for the group later on today.

watch it push up for another try at 1.4000

Well, its friday, ppl probably have no thoughts to trade .
Anyway there were a few very nice signals for PASS trade, actually i missed them all (damn it).

So nice weekend to all guys!

Here we go. It is Friday afternoon, and it is time to put your money where your mouth is (well, it is more like put MY money where MY mouth is) .Therefore ...

I started this week (and month of March) with $520 balance on my live account, and ended the week with $559, which is short of the 10%, BUT still on the positive side. This works out to about 7.5% which is not bad for one week trading during work hours in NY zone on a live account.

Again, to verify my records, I have the link below in my signature, which will direct you to myfxbook site where they keep track of my account activity.

I have made a couple of stupid mistakes this week, which I learned from and hope not to repeat again. The biggest one was looking at the eurusd chart which had the setup I liked and executing a trade on the eurjpy instead, which cost me about $$40 (about 6 % of my account at that time) ... This will NEVER happen again

If you have your numbers for the end of the week handy, please post them. I am really interested in seeing how this system would work for traders who has more time watching their platform than myself, and for traders in the eu/london time zone who were able to trade the eu/london sessions (where most action happpens)

I have had a few people here inquire about entering the trade earlier than what the PASS calls for. Before I respond to this iquiry, I would like to re-iterate the philosophy behind the late entry and why it is in the PASS.

When you have a ranging market with lots of going back and forth in price around the point where EMAs converge, before the market makes up its mind, it is sometime difficult to predict whether or not the market will go in the same direction as your trade. The LATE entry will help filter this out a little bit by keeping you out of the market until Price Actoin has actually broken through the previous fractal level, confirming the direction and momentum before juming in the trade.

LATE entry will also serve as a "breakout" signal which is why this system is based on Price Action, and not just idicators and a bunch of pretty- coloured swiggly lines. Remember this system is NOT based on EMA cross and if it was you would get killed in a ranging market just like using any other EMA cross system out there.


Now, I have seen some entries where poeple enter the trade right at the point of EMA converging (crossing), so that they can get the best price possible. Yes, you may get a better price when entering, however, if you do that, you are asking for trouble because the price can certainly reverse and go the otherway.

So, to exercise LATE entry, you just need to follow the PASS rules as outlined in the PDF in the first post. I will discuss the EARLY trade entry in the next post.

OK, so what is this "early" entry. Well, I have mentioned it in one of my previous posts, but never really showed it by examples. In the chart below yu wil see what I mean. The area marked "3E", is the Early entry vs our usual Late entry, marked by 3" to see the contrast between the two.

REMEMBER, that step 1 and 2 as marked on the chart MUST happen before you go in the trade using either 3 or 3E. So, you need converging EMAs (marked by "1" on chart) followed by a fractal forming (Marked by "2" on chart) , the price pulling back and then you have a potential entry based on "3" or "3E" marked on chart. Late or early entry CANNOT happen without 1 and 2 happening first. The only thing differnt that early entry gives you is that you do not need to wait to break the fractal level, you can simply draw what I call mini counter-trend lines (will refer to them from now on a MCTL) on your chart and wait for a break of those MCTLs by a ouple of pips (or wait for a close above the mctl) to get in, this will usually be at a price "earlier" than the break of the fractal, but sometimes it wil be very close to the fractal level anyway if you do not have a falling/rising mini counter trendline, but just have a horizontal mini trendline. In this case, just follow late entry rules.

Note that the early entry method wil give you a beter price on entry, and hence your SL will be much tighter and your potential TP will be bigger. HOWEVER, this method does not rely on breaking out of previous support/resistance levels presented by the previous up/down fractals, so it is a bit more assuming and a bit more risky in a sense that there is no confirmation of PA.

This is very similar to the early entry method, except that the point "1" does not have to happen. i.e. the EMAs do not need to come to a point, but they stll have to be lined up correctly.

ALWAYS check your higher timeframe charts (15-min and 60-min) to make sure those are still lined up in correct order for bias and direction of trade.

1- We need the price to pull back to the EMAs (not necessarily to a point, otherwise that is considered a new entry, not a re-entry)

2- We need to see a fractal in the opposite direction of our trade form (signalling an end to the pull back in price), so, if we are looking for a BUY, the price has to pull back to the EMAs, and then stop with a fractal DOWN forming signalling a bottom and end of retrace.

3- We then need to see the price breakout of the mini counter trendline (which is naturally caused by the price pullback) by a couple of pips

4- Enter the trade with SL just below the latest fractal up for a BUY order. TP1 should be 1xSL with TP2=2xSL, etc.

5- NEVER EVER re-enter the trade in same diretion as original trade after 2 pull backs already happened. First pullback is usually the best one to take advantage of. Second one is good, but anything after the seond may be risky and price may actually go through the EMas at that point in time and reverse.

6- ALWAYS check your higher timeframe charts (15-min and 60-min) to make sure those are still lined up in correct order for bias and direction of trading trend before you re-enter.

I hope everyone has a wonderful weekend, and a great trading week next week full of positive pips especially with the new and improved early entry and re-entry into trades ...

I will have alot more screen shots and examples next week to affirm this method. I am a big believer of real-time live chart examples and I hate historical charts and has beens, because hindsight is always 20/20 and I would like to prove this system works in realtime before or as the trade develops.

Good night all and see you next week

EUR/JPY

Hi PP, can you look back on one of my posts I sent a while ago, I would love to have your feedback on the chart set up for the trade I took there.


Thanks.

David.

Pure Price which broker do you use and how much percentage you use per lot/trade?

How do you determine the trend on the 1 hr chart?

Hi PP;
For the Early Entry vs Late Entry setups, Your wait at close the 5M bar ?.

Thanks in advance.

Nice setup, thanks for posting this luismario

Yes, wait for the close of the bar to confirm the breakout of mini countertrendline