M5-Two-Way-Confirmation-Strategy - MT4/MT5 Resources
M5-Two-way confirmation strategy <br> real time trading
When I say "M5 - Double Confirmation Strategy" I will point out that I primarily use this mass strategy with M5, but it can be applied to any time frame as well. So you can use it on multiple time frames.
Currency Pairs: All (Preferred: EURUSD > Smaller spreads, higher volatility)
Time Range: 5 minutes (all > see the "Multiple Time Ranges" section and # 72 , # 76 , # 77 , # 78 )
Indicators: BB14, ADX14, SSD 5, 3, 3*, EMA 5, 13, 21, 55, 200, pivot point,
Optional: CCI, RSI, MACD
(*SSD = Complete Stochastic, see # 8 , please).
This technique is used in conjunction with Bollinger Bands 14,2, ADX 14, SSD 5, 3, 3, EMA 9, 13, 21, 55, 200 and pivot points.
Buy/sell signals:
Entry options:
(1) After two hollow candles or two solid candles;
(2) If the candle closes on the other side of EMA13;
(3) EMA9/EMA13 crossover.
(4) Register in advance. See "Transaction Examples". (Here you have higher risk, but you also make more profit)
Leading indicators: SSD 5, 3, 3, often crossed 1-2 bars before.
confirm:
(1) +DI/-DI line crossover. The +DI (green) and -DI (red) lines (ADX 14) sometimes cross 1-4 bars after the entry point, and the ADX value crosses the 20 line and the 25 value;
(2) EMA9/EMA13 crossover.
Price Momentum:
+DI remains above -DI – an uptrend is in place.
-DI remains above +DI – a downtrend is in place.
Strategic thinking:
ADX -/+ DI lines are used to spot entry signals .
Once ADX reaches above 20 a peak buy signal occurs when +DI (green) crosses above -DI (red).
A sell signal is the opposite: -DI will cross +DI downwards.
Exit point:
(1) When the color of the second candlestick changes, or
(2) When the bar closes on the corresponding side of the EMA5 or EMA13 line, or
(3) EMA5/EMA13 intersection;
(4) In all cases where the +DI/-DI lines cross (when trend changes - two DIs cross).
(5) Close to the pivot point.
- Buy and exit situations are usually signaled by SSD 5, 3, 3 crossing near the 20 or 80% line;
Notice:
- The ADX indicator is never traded alone but is used in conjunction with other indicators and tools. Most of the time the ADX indicator gives a much later signal . However, the ADX indicator is much more reliable compared to other indicators in a trader's toolkit, which makes it a valuable tool for many Forex traders.
- If ADX trades above 20 but below 40, it is time to apply the trend following method . An example is: Forex trading moving averages or trading using the Parabolic SAR.
- When ADX reaches the 40 level (5 minute chart - e.g. ADX 50 level on the 1 minute time frame), it indicates that the market is experiencing overbought/oversold (depending on the trend) conditions and it is time to protect some profits by at least moving stop loss orders to breakeven. See more information on SSD 5, 3, 3 here.
- When ADX passes the 40 level, it is a good time to start collecting profits, gradually extending bounce and sell trades and protecting the remaining positions with trailing stops. Look at SSD 5, 3, 3.
Pay attention to the clock:
Watch for the London open (6am to 8am London time), the New York open (6am to 8am New York time) and the London close (5pm to 6pm London time). When these traders open and close positions for the day, the market changes.
Multiple time frames:
M5-Double Confirmation Strategy is a manual trading strategy. Trades can also be triggered on different timeframes (e.g. M15, M30, H1, H4, Daily, and all currency pairs) and can be used in range and trending markets. M5 - Two-way opt-in policy has been used since 2006. You can use M5-2-WCS in conjunction with price action (e.g. engulfing patterns, hammers, shooting stars, bars). Simple and efficient! If you're going to get more other arguments, look at the extreme points on key points. The EMA lines will show you price action momentum and whether there is a trending environment or a range-bound market. (See also "Transaction Example" - "MTF").
Templates and indicators:
Please see attachment.
Live trading <br> Orders are usually posted in real time.
Trade ExampleS
EURUSD, M5, June 5, 2011, Page 1, # 2 - # 7 ; Early Entry: EURUSD, H5, June 6, 2011, Page 2, # 17 ; Early Entry: Silver, M5, June 6, 2011, Page 2, # 18 ; USDJPY, M5, June 6, 2011, Page 3, # 43 , p.4, # 47 ; LCrudeJul11, M5, June 7, 2011, p.3, # 44 , # 45 , p.4, # 46 ; "MTF" - GBPCHF, Daily Journal, June 9, 2011, p.6, # 85 /GBPCHF, M30, June 11, 2011, p.7, # 94 ; "MTF" - Silver, M5/M30, June 10, 2011, Page 7, # 92 ; Range Trading - Picking at Bollinger Band Tops and Bottoms , EURJPY, H4, June 11, 2011, Page 7, # 95 ; CCI - Divergence, CADJPY, H4, June 29, 2011, Page 18, # 256 ;
Forex knowledge and strategies:
http://www.babypips.com/school/
http://forex-strategies-revealed.com/basic
http://www.investopedia.com/dictionary/default.asp
Articles and links:
Forex Day Trading Using Price Action and Pivot Points , p.2, # 24 ; Price Action Trading – Waiting for Confirmations, p.2, # 25 ; How to Find Profitable Forex Systems, p.2, # 26 ; 5-Minute Intraday Trading Strategy, p.2 , # 28 ; Volatility Stops, p.3, # 37 ; Average True Range, p.3, # 38 ; Average Directional Index (ADX). How to interpret ADX. How to Trade with ADX, p.3, # 40 ; Forex Trading Strategy #2 (Parabolic SAR + ADX) , p.3, # 41 ; Forex ADX Indicator Explained, p.3, # 42 ; Trading with Multiple Time Frames, p.6, # 77 ; How to Use Multiple Time Frame Analysis when Trading Forex, Futures and Stocks, p.6, #78; Insider Strategies in Forex Trading , p.6, # 87 ; Inside Trading Strategies, page 6, # 89 ; Understanding Your Trading Environment, page 7, # 96 ; Bollinger Bands, p.7, # 97 ; Bollinger Bands Width and Trading Ranges , p.7, # 98 ; How to Use Bollinger Bands (BB) in Forex , p.7, # 99 ; Basic Bollinger Bands System , p.7, # 100 ; Forex Trading Hours, page 12, # 166 ; How to Become a Successful Part-Time Forex Trader , p.12, # 167 ; Forex Exit Strategies: Maintaining Profits , p.12, # 168 ; Forex Price Trends - Interpreting the Language of the Market , p.12, # 174 - # 181 ;
Demo account:
Deposit: 25'000.-$, start date: June 14, 2011, target: 250.-$ per day (1% per day).
Limited term: 4 days per week (1'000.-$) / 4 weeks per month (4'000.-$) / 10 months per year (40'000.-$).
actual:
Share capital on June 23, 2011: 36.516.-$, Profit: + 11.516.-$ , see page 15, # 218 , please.
http://twitter.com/#!/forexcube
http://www.forexfactory.com/forexcube
http://www.myfxbook.com/members/Forexcube
Close account:
The account will be closed when 100% profit is generated.
Deposit: 10'000.-$, Start date: June 21, 2011, "Turbo-High-Risk-Scalping-Account", June 23, 2011 Equity: 20'846.48$, Profit: + 10.846.48 , (100% in 3 days), see page 14, # 210 , please.
How reliable is the indicator? Whatever seems to work for you will do!
I wish you success and happiness!
FX Cube
When I say "M5 - Double Confirmation Strategy" I will point out that I primarily use this mass strategy with M5, but it can be applied to any time frame as well. So you can use it on multiple time frames.
Currency Pairs: All (Preferred: EURUSD > Smaller spreads, higher volatility)
Time Range: 5 minutes (all > see the "Multiple Time Ranges" section and # 72 , # 76 , # 77 , # 78 )
Indicators: BB14, ADX14, SSD 5, 3, 3*, EMA 5, 13, 21, 55, 200, pivot point,
Optional: CCI, RSI, MACD
(*SSD = Complete Stochastic, see # 8 , please).
This technique is used in conjunction with Bollinger Bands 14,2, ADX 14, SSD 5, 3, 3, EMA 9, 13, 21, 55, 200 and pivot points.
Buy/sell signals:
Entry options:
(1) After two hollow candles or two solid candles;
(2) If the candle closes on the other side of EMA13;
(3) EMA9/EMA13 crossover.
(4) Register in advance. See "Transaction Examples". (Here you have higher risk, but you also make more profit)
Leading indicators: SSD 5, 3, 3, often crossed 1-2 bars before.
confirm:
(1) +DI/-DI line crossover. The +DI (green) and -DI (red) lines (ADX 14) sometimes cross 1-4 bars after the entry point, and the ADX value crosses the 20 line and the 25 value;
(2) EMA9/EMA13 crossover.
Price Momentum:
+DI remains above -DI – an uptrend is in place.
-DI remains above +DI – a downtrend is in place.
Strategic thinking:
ADX -/+ DI lines are used to spot entry signals .
Once ADX reaches above 20 a peak buy signal occurs when +DI (green) crosses above -DI (red).
A sell signal is the opposite: -DI will cross +DI downwards.
Exit point:
(1) When the color of the second candlestick changes, or
(2) When the bar closes on the corresponding side of the EMA5 or EMA13 line, or
(3) EMA5/EMA13 intersection;
(4) In all cases where the +DI/-DI lines cross (when trend changes - two DIs cross).
(5) Close to the pivot point.
- Buy and exit situations are usually signaled by SSD 5, 3, 3 crossing near the 20 or 80% line;
Notice:
- The ADX indicator is never traded alone but is used in conjunction with other indicators and tools. Most of the time the ADX indicator gives a much later signal . However, the ADX indicator is much more reliable compared to other indicators in a trader's toolkit, which makes it a valuable tool for many Forex traders.
- If ADX trades above 20 but below 40, it is time to apply the trend following method . An example is: Forex trading moving averages or trading using the Parabolic SAR.
- When ADX reaches the 40 level (5 minute chart - e.g. ADX 50 level on the 1 minute time frame), it indicates that the market is experiencing overbought/oversold (depending on the trend) conditions and it is time to protect some profits by at least moving stop loss orders to breakeven. See more information on SSD 5, 3, 3 here.
- When ADX passes the 40 level, it is a good time to start collecting profits, gradually extending bounce and sell trades and protecting the remaining positions with trailing stops. Look at SSD 5, 3, 3.
Pay attention to the clock:
Watch for the London open (6am to 8am London time), the New York open (6am to 8am New York time) and the London close (5pm to 6pm London time). When these traders open and close positions for the day, the market changes.
Multiple time frames:
M5-Double Confirmation Strategy is a manual trading strategy. Trades can also be triggered on different timeframes (e.g. M15, M30, H1, H4, Daily, and all currency pairs) and can be used in range and trending markets. M5 - Two-way opt-in policy has been used since 2006. You can use M5-2-WCS in conjunction with price action (e.g. engulfing patterns, hammers, shooting stars, bars). Simple and efficient! If you're going to get more other arguments, look at the extreme points on key points. The EMA lines will show you price action momentum and whether there is a trending environment or a range-bound market. (See also "Transaction Example" - "MTF").
Templates and indicators:
Please see attachment.
Live trading <br> Orders are usually posted in real time.
Trade ExampleS
EURUSD, M5, June 5, 2011, Page 1, # 2 - # 7 ; Early Entry: EURUSD, H5, June 6, 2011, Page 2, # 17 ; Early Entry: Silver, M5, June 6, 2011, Page 2, # 18 ; USDJPY, M5, June 6, 2011, Page 3, # 43 , p.4, # 47 ; LCrudeJul11, M5, June 7, 2011, p.3, # 44 , # 45 , p.4, # 46 ; "MTF" - GBPCHF, Daily Journal, June 9, 2011, p.6, # 85 /GBPCHF, M30, June 11, 2011, p.7, # 94 ; "MTF" - Silver, M5/M30, June 10, 2011, Page 7, # 92 ; Range Trading - Picking at Bollinger Band Tops and Bottoms , EURJPY, H4, June 11, 2011, Page 7, # 95 ; CCI - Divergence, CADJPY, H4, June 29, 2011, Page 18, # 256 ;
Forex knowledge and strategies:
http://www.babypips.com/school/
http://forex-strategies-revealed.com/basic
http://www.investopedia.com/dictionary/default.asp
Articles and links:
Forex Day Trading Using Price Action and Pivot Points , p.2, # 24 ; Price Action Trading – Waiting for Confirmations, p.2, # 25 ; How to Find Profitable Forex Systems, p.2, # 26 ; 5-Minute Intraday Trading Strategy, p.2 , # 28 ; Volatility Stops, p.3, # 37 ; Average True Range, p.3, # 38 ; Average Directional Index (ADX). How to interpret ADX. How to Trade with ADX, p.3, # 40 ; Forex Trading Strategy #2 (Parabolic SAR + ADX) , p.3, # 41 ; Forex ADX Indicator Explained, p.3, # 42 ; Trading with Multiple Time Frames, p.6, # 77 ; How to Use Multiple Time Frame Analysis when Trading Forex, Futures and Stocks, p.6, #78; Insider Strategies in Forex Trading , p.6, # 87 ; Inside Trading Strategies, page 6, # 89 ; Understanding Your Trading Environment, page 7, # 96 ; Bollinger Bands, p.7, # 97 ; Bollinger Bands Width and Trading Ranges , p.7, # 98 ; How to Use Bollinger Bands (BB) in Forex , p.7, # 99 ; Basic Bollinger Bands System , p.7, # 100 ; Forex Trading Hours, page 12, # 166 ; How to Become a Successful Part-Time Forex Trader , p.12, # 167 ; Forex Exit Strategies: Maintaining Profits , p.12, # 168 ; Forex Price Trends - Interpreting the Language of the Market , p.12, # 174 - # 181 ;
Demo account:
Deposit: 25'000.-$, start date: June 14, 2011, target: 250.-$ per day (1% per day).
Limited term: 4 days per week (1'000.-$) / 4 weeks per month (4'000.-$) / 10 months per year (40'000.-$).
actual:
Share capital on June 23, 2011: 36.516.-$, Profit: + 11.516.-$ , see page 15, # 218 , please.
http://twitter.com/#!/forexcube
http://www.forexfactory.com/forexcube
http://www.myfxbook.com/members/Forexcube
Close account:
The account will be closed when 100% profit is generated.
Deposit: 10'000.-$, Start date: June 21, 2011, "Turbo-High-Risk-Scalping-Account", June 23, 2011 Equity: 20'846.48$, Profit: + 10.846.48 , (100% in 3 days), see page 14, # 210 , please.
How reliable is the indicator? Whatever seems to work for you will do!
I wish you success and happiness!
FX Cube
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