Trading is as simple as ABCD

Have a loook where those moves on USDCHF and GBPCHF started this morning. See how they started the exact same setup I've just run through but I had the wrong pairs this morning, now if we could just work out which pairs to trade we'd be laughing all the way to the bank..





Bit by bit we're getting there...

Just thinking out loud here to try and workout how we could of identified those CHF pairs as the boys to be on this morning as opposed to the GBP pairs I traded...

Now remember I said these TMA channels are like a road map to me to help me see where I am on the 5 and 15 min timeframes?? Well have a look at these charts again and when the pairs setup best for a run???

Heres a clue, look at the 15 min channel and the position of the 5 min channel in that 15 min channel? Get it????

The best signals will come when the 5 min channel is low in the 15 min channel and in fact as we've seen before when the 5 min and the 15 min Lower bands meet up and they are both going up then thats got to be your ideal entry, hasn't it??

So when we see several pairs lining up together with the 5 min set up then trade the pair that is in the better position in your 15 min channel from the examples this morning we can see the bigger runners were lower in their 15 min channel whereas the GBPJPY and GBPAUD were very close to the 15 min higher bands which explains why they struggled to drive higher.

But have a look at this GBPCHF chart and they were touching the 5 min lower band much lower down in the 15 min cycle and far away from the 15 min upper band.



So to summarize, not only should we be looking for 5 min touch trades when the slope is the right direction but also check out your road map and see where the 5 min channel is in respect to the 15 min channel and pick the pair with some room to move...

Use these TMAs like a map...

Starting to get the hang of this now look at this two charts...



So took 20 pips out of this GBPNZD remembered my TP on 5 min LB



Mind you should i be holding for the next 15 min LB touch???



Looks like that might of been the better play...

Give me time I'm just getting use to the 5 min TP's..

Good read if you trade the euro


http://www.armstrongeconomics.com/ar...economics_blog

@ozziedave
Good stuff dave. Have you been trading this approach for very long ?

File uploaded for honestknave....ref our pm

Saw this chart earlier as top trender GBPNZD raced up to the 5 and 15 min TMA's so didn't buy like I might normally do with TTindy..



Guess that one worked OK...



This is why I'm watching these 5 and 15 min TMAs so closely, even as a top trender you have to watch out for them...

There is definately something useful to be gained from having these 5 and 15 min channels on a 1 minute chart as they provide some dynamic support and resistance levels for the 1 minute trader. I'm seeing it as where the 5 minute and 15 minute traders will be joining or leaving the market so very effective for 1 minute trading.

I'm basically trying to get in line with these traders so I can maximise my opportunity and be selective over which trades I take. For instance when a top trender is approaching a higher band on the 15 min TMA its a no buy area as illustrated this morning on GBPAUD and GBPNZD in fact I'd say if you're a counter trend scalper they are invaluable levels giving you tight stops and good returns.

They definitely give you very good exits and if traded correctly give some great entries too with the 5 min trend. Just identify a nicely sloping 5 min channel then look to enter at the lower bands of the 5 and 15 min channels..

heres a couple of examples from this morning..




Heres a trade from earlier



So theres definately some advantage of having these higher timeframe TMAs on your chart but like all indicators you need to know how to use them and whens best to use them..

By the way I'm saving as many of these charts as I can to save the positions of the TMAs at the time of trading just to ensure they are worth trading around and so far like most indicators theres a right time and a wrong time to trade them, just need to know when the conditions are right...

EUR Strong across the board. My fingers are ITCHING to go long, but have to wait for the bottom lines are reached. It's killing me!!

the skill of patience

Clive i had a look this morning very quickly.and looked lime usdcad was.looking interesring

as for your.earlier post as.to hold.or.not.......if.your 5 and 15 channel.line up and you make profit just check the next channel.up...the 30.or 60min....if the 15min is in a good position with 60min channel.to.continue the move then you have 2 options.

1.close the trade and re enter in the same direction after the pullback
or
2 hold and ride the pullback before continuation of trend on the higher timeframe

devontrader,

USD/CAD is and has been on a rising trend . This is a good pair to for new peeps to practice building/adding to long positions.
Wish they were all this easy. Way to bad I missed the beginning of the hour trend.


MTPockets

Good....no longer mtpockets now then lol

GBP strong across the board....

Working on it .. lol
If I can only learn to be consistant.


MTPockets

Yep I hear you but I'm not convinced what looks like its going to go up and up on a higher timeframe will do that , like all charts the y look great in hindsight but there are so so many hrly setups that don't follow through I'm convinced you will end up with egg on your face unless you've entered at the bottom of the hourly channel off of its lower band and even then you will strugglew to hold on and of course if its not the hrly trend you foresaw then it as ooops, out for nowt.

As for trading through drawdown thats something that I just don't do , full stop. 20 pips is the absolute maximium drawdown I ever endure and most times I'm out at 10 and that s no accident that the core philosophy behind my style if I'm wrong I want out asap. Trading to me is all about risk management and money management and not much else which is why I'm constantly looking for low risk entries on my 1 minute charts and going to BE within 2 or 3 pips I just want my risk off the table asap.

Yesterday I made 80 pips in and out of the market and suffered literally no draw down whatsoever..

These cycles are awesome for identifying low risk high potential trades and when I master them I will be a seriously good trader...

Heres what I'm looking for everyday...



Low risk entries with high rewards 10 pip stops 40 pips rewards get to BE within minutes thats my style , end of story...

Only trouble is it takes patience to wait for them and if you miss them they are gone before you know it.

Sorry but not convinced we're going to catch the start of hrly runs etc just too difficult to time to perfection, its bad enough waiting for 1 minute setups never mind hrlys...

The only way would be bigger stops or suffering untold BE trades until you get one to stick and even then You're never know its going to follow on to your hrly or whatever trend. It would require patience far and beyond anything I could muster thats for sure...

Plus to be honest we just don't need it to make money trading forex, we just don't need hundreds or thousands of pip trades, they are rare very rare trades to catch indeed whereas 10 here 10 there happen all day long on these one minute charts and thats all we need...

Short on eur/usd. divergence at the 5min upper band.

So your dayong should just sticj with 5 and 15?

Will need a eveninf skype call just to be clear about everything

USD/CAD

Closed 2 positions +52 pips and letting the 3rd position run with a 35 point TS



MTPockets