Hi all,
I came across this thread recently and decided to give it a go. I have watched several youtube videos about the way to trade the grid. Sofar, I have only been able to get some grip on the trend trades on the 5 minute chart.
Attached are two pics of trend trades I just made. I would like to share them with you (also for feedback purposes).
What I look for is:
- each column (1m, 5m, 15m, 1hr) indicating the same direction (that means: same color on each column);
- price is above (if trend is up) or below (if price is down) all MAs on all 4 time frames;
- price has moved away from the L1 and L2's and sets a clear new high/low on the 5 minute chart;
- all MA's on the 5 minute chart are lined up (L1 is closest, then L2, then L3, etc); and
- a retrace to at least the 5m L1.
Entry:
- Enter when price hits 5m L1. If 5m L3 is more than 20 pips away, wait. Ideally, you want to have 10 pips between the 5m L1 and L2s and the 1m L1s and L2s when you enter (if your SL is 20 pips).
- If prices retraces further (e.g. to 5m L2), you could add to the trade but only if 5m L3 is within 20 pips.
- do no add to trade below 5m L3.
Stop loss:
Make sure that your SL is always below 5m L3. Close the trade if price closes beyond the 5m L3.
Take Proft:
Depends on the situation and your comfort level. The 1m L1 or L2 might be a good (first) target if there is some space between the 5m L1 and L2 and the 1m L1 and L2 at entry (e.g. 10 pips by a 20 pips stop loss). Since this is a trend trade and you expect price to move further with the trend, you could also set your TP at the last high/low on the 5m chart (or even beyond).
If you have multiple positions, you could close the first position when price reaches the 1m L1/L2s and the second at the last high/low of the 5m chart.
The attached USD/CHF was a perfect entry according to the above rules. The AUD/USD was more risky (look at MAs). I closed the trades manually (at the point where price was in the picture).
I came across this thread recently and decided to give it a go. I have watched several youtube videos about the way to trade the grid. Sofar, I have only been able to get some grip on the trend trades on the 5 minute chart.
Attached are two pics of trend trades I just made. I would like to share them with you (also for feedback purposes).
What I look for is:
- each column (1m, 5m, 15m, 1hr) indicating the same direction (that means: same color on each column);
- price is above (if trend is up) or below (if price is down) all MAs on all 4 time frames;
- price has moved away from the L1 and L2's and sets a clear new high/low on the 5 minute chart;
- all MA's on the 5 minute chart are lined up (L1 is closest, then L2, then L3, etc); and
- a retrace to at least the 5m L1.
Entry:
- Enter when price hits 5m L1. If 5m L3 is more than 20 pips away, wait. Ideally, you want to have 10 pips between the 5m L1 and L2s and the 1m L1s and L2s when you enter (if your SL is 20 pips).
- If prices retraces further (e.g. to 5m L2), you could add to the trade but only if 5m L3 is within 20 pips.
- do no add to trade below 5m L3.
Stop loss:
Make sure that your SL is always below 5m L3. Close the trade if price closes beyond the 5m L3.
Take Proft:
Depends on the situation and your comfort level. The 1m L1 or L2 might be a good (first) target if there is some space between the 5m L1 and L2 and the 1m L1 and L2 at entry (e.g. 10 pips by a 20 pips stop loss). Since this is a trend trade and you expect price to move further with the trend, you could also set your TP at the last high/low on the 5m chart (or even beyond).
If you have multiple positions, you could close the first position when price reaches the 1m L1/L2s and the second at the last high/low of the 5m chart.
The attached USD/CHF was a perfect entry according to the above rules. The AUD/USD was more risky (look at MAs). I closed the trades manually (at the point where price was in the picture).
Attached Image(s) (click to enlarge)
