Trend Follower m1 Scalping WITH m5 Revis

Hi guys,

For those of you who don't know me, my name is Vish, I am 23 years old and have been trading Forex for the past 2 years, jumping from one method to another as none seemed to suit my style of trading and money management as I live in the UK, but the basics I have retained throughout these two years seem to be Moving Averages, CCI and RSI... This post is intended to reignite interest in trading by TheWicker Original Trend Follower 5 Minutes I first stumbled upon it two years ago and had a hard time sticking with it as there weren't enough trading and scalping setups. If you want to learn more about Guppies and learn more about the compression/expansion of these moving averages, check out TheWickers original m5 thread, there's a lot to learn in it.

I'd like to share a setup I use now, it's very similar, but more intuitive and should provide traders with more potential trades/scalps. In my humble opinion, if you want to trade on m1, this setup is more useful for safely trading m1 alongside m5 than the original version.

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+++ Basic Rules and Guidelines+++

The basics here are that m1 is used for entry and m5 trend direction is the basis for our trading in m1. The direction of the trend on m5 will be determined by the Guppy Rainbow. The trend direction of Guppy is as follows:

Long head: Purple guppies are at the bottom of the rainbow, yellow guppies are at the bottom of the rainbow.
Shorts: purple guppies on top of the rainbow, yellow guppies on top.

Once the long guppy rainbow is set in m5 we can start looking for long entries in m1 which I will explain and when the short guppy rainbow is set in m5 we can start looking for short entries in m1. Simple?

The diagram consists of 5 different elements which I will explain >>>

1) Guppy Rainbow in our main trend direction - m1 entries can only take the popular m5 Guppy direction.
2) The RSI arrows are set to period 8 which matches my approach perfectly and works great in helping me spot retracements and prepare for entry points, these can be seen with the red/green arrows on my Guppies on my chart
3) Trend Envelopes 2.0 - These are on my Guppies and can be seen in orange/blue lines and blue/orange ball colors to show the trend direction, this method is very useful and will help us know when the pullback is over and be ready to enter the trend. The standard setting has been tested by me and seems to be the best, so no need to change it at this time.
4) Mtf Laguerre - critical part of this method, used only to get entries in m2 chart. This doesn't redraw, it just takes longer than normal to try and simulate the long-term trend, but is still responsive while not being slow. More on how to use it later.
5) RSI MTF Bars - The RSI bars at the bottom of my screenshot run on periods of 42, 84, 126 and 252 rsi. These model long-term trends and make our m1 entries safe. Again, it is crucial to only enter when all colors are the same, so it filters out volatility and helps us only trade when the price is "moving". There is currently no need to change these settings, which generate buy/sell signals when these 4 RSI periods are above/below the 50 level.

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>>> Long<<<

1) The m5 trend direction needs to be set long.
2) When m1 guppies are established in the same direction as m5, the probability is higher, purple at the bottom is bullish, and yellow at the top remember!
3) The TrendEnvelopes 2.0 signal with the blue ball needs to be given to prepare for the entry point. The RSI 8 arrow is a useful confirmation if the RSI 8 arrow also signals a long position, this tends to give a higher probability to the trade if both the RSI 8 arrow and the TrendEnvelopes blue ball signal on the same m1 candle.
4) Laguerre needs to rise from below the 0.15 level, if you look closely at your Laguerre indi it will appear as a small green dot. If this is a signal but the bottom RSI bars have not lined up yet, it is safer to wait for them to become ready.
5) A safer entry appears to be when the RSI bars are all lined up in blue, indicating that the long entry is now safer. If you only trade when these RSI bars are all the correct colors, from what I've seen, this will help you avoid getting stuck in a weak or bad move.

>>> Shorts<<<

1) m5 Guppy Rainbow needs to be set to Short. The top is purple and the bottom is yellow.
2) If the direction of the m1 guppy is the same as the direction of the m5 rainbow, this will allow for safer entry.
3) The TrendEnvelopes signal needs to be given when the orange ball is formed, the RSI arrow can be used for additional confirmation, but is not required, but it increases the probability when the RSI arrow is given on the same signal candle as TrendEnvelopes.
4) Laguerre needs to move down from the 0.85 level above, which will indicate by a small signal that the point is in the 0.85 area of ​​this indy. If Laguerre has issued a short signal but the RSI bar at the bottom is not quite ready yet, wait for a candle or two for the RSI bar to align properly. If the trend is good, things will line up on the same candle or 1-2 candles after the Laguerre signal.
5) For higher probabilities and stronger entries, it is important to ensure that all RSI bars are red, indicating a safe short position.

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I will be posting more screenshots in the next few articles and explaining more about pullbacks to guppies and how to prepare for entry with guppies. The files and my template are posted below as a zip file, the settings and indicators seem to work together so I hope no changes are made or people mess things up with other indicators as that might distract the guppies, we have what we need to safely enter m1 to follow the longer m5 trend.

I hope this is of some help to trend followers using Original m5 and sheds some light on how to safely find more entries with smaller stops.

Credits & Inspiration >>
TheWicker provided Guppy and the original concept, CelticHeart kindly shared his RSI cycles in another thread, Eati provided the RSI bars indicator, my friend pilatus has supported and helped with this approach from the beginning, and Pardy who has inspired my trading journey for the past two years. To the gentleman who shared this Laguerre indicator on this forum, if you see this please leave me a comment with your name and I will add your name in recognition of your work. Thanks!

Happy Pippin and more diagrams and explanations below. God bless...