The 5 minute TF S&R trading system

FX, The 2b trade was short at 1.3586, out at 1.3576, on the retest of point 2 in the 123 sequence after two bars fully cleared?

If the trade was in the proper time period, ( USA session) you could see a short here at 1.3579 with a new downtrend starting?

Good eye sossos

What are the types of trades you look for?

1.123
2.2b
3.pullback to support
4.123 with 2 bars above/below 2 and a pullback
Does that about cover it?
Sorry for all the questions, I just found this thread after a few years looking around FF.

Yes to all 2b and 123 happen at end of trends only

I'm curious, has anyone pondered on what market phenomenon or phenomena allow for this setup to work? Does anyone have any theories or conclusions?

My guess, is that price is going back to stop out breakout traders that have moved to breakeven.

99 short if nothing changes

Dont you see divergence? Or am i wrong?

yes there is div oak, but following the candlestick approach which considers just price. i'm currently backtesting and early results look great. it's also less ambiguous than line analysis imo. i would recommend having a good look at it - start with the graphs that fx posted, i.e. aug, sep, oct 2013.

double scenario with not enough room - cancel 99

Can somebody explain when 123 at end of trend is a valid setup by looking at this from right now:

Potential long at 92, with 2 clear bars above?

Why 92?

Provide chart please

Closing high broke the previous close high

Now we have 2 bars clear, correct?

You are correct. I also posted a chart of the situation and would like anybody else to comment on that

Oak rsi went down to 6 then we got 2b when when price went lower I would disregard div cause it was so low it would never get there again. I would focus more on chart pattern pa and not div. G l nice to see you I think market structure might be the answer with s and r s and d factored in

Do you have an entry protocol? Highs/Lows, closes or a handgrenade ( close is good enough)

Sossos when a setup occurs say to go long we use the high of pullback area to enter