Effective 5M intraday trading - MT4/MT5 resources
Hello fellow traders!
There's nothing new about the system I'm going to introduce here. I just tried to describe it with some strict rules as possible.
The beauty behind this system is that initially it does not rely heavily on indicators. There is no such thing as "I go long or short when indicator 1 does this and indicator 2 crosses such and such a level." I think this approach is inherently wrong because when you rely solely on indicators, they don't give you an idea of where the price is going.
Only use the indicators to guide your input after you've checked the PA and know the mode or model you're playing. Whether it’s a double top or double bottom, a head and shoulders pattern, a 1-2-3 pattern, etc.
Start with the visual tools - trendlines, divergence, S/R and Fib levels, then jump in with the indicators.
I don't know how to emphasize this further, but once you have this idea in your head, you can use any metric you like in your entries.
For our PA examination we will use trend lines and divergences . But before I explain the system itself, let me touch on some important general stuff.
General information:
1. Timetable: I use 5M TF. It best suits my needs as an active day trader. This doesn't mean the system won't work on other timeframes, but initially this thread is intended for day trading.
2. Timing: I recommend looking for trading opportunities during the following market times: 5 GMT – 8 GMT and 11 GMT – 15 GMT. This is what the pros do, so instead of inventing the wheel, do what the people who actually make money on Forex do. One of the best threads I got from FF - Sonic R thread (http://www.forexfactory.com/showthread.php?t=114792). Also Dean Malone does this on compassfx. So if for some reason you don't believe me, go read what these people are telling you.
3. Trading Pairs: I only trade EURUSD using this system. Again, this does not mean that it does not work on other currency pairs, on the contrary, I believe that this technique must be mastered first so that you do not miss out on trading opportunities on any currency pairs. Only add more pairs if you think you can use at least one pair effectively.
template:
Here I will describe the indicators I use and why I use them.
1. MACD (12, 26, 9) – I use this to spot divergence and trade based solely on its direction.
2. Random(5, 3, 3) – I use this to find divergences that MACD doesn’t recognize.
3. EMA 20, 50 and 200 – I use these to identify visual trends.
4. IB (Inside the Bar) – I use this indicator to find areas of low volatility in the market.
5. Fractals – I use them to identify retracements and points for drawing trend lines.
6. Semaphore (8, 13, 34) – I use this indicator to identify price movements and points for drawing trend lines.
7. Pivot D_v5 – I use this indicator to identify intraday S/R level and TP level targets.
------------------------------------------------------------------------------------------------------------------------------------------------
renew:
Please read post #42 for other entries we considered in this thread: http://www.forexfactory.com/showpost...1&postcount=42
Read the following posts for some other helpful information:
http://www.forexfactory.com/showpost...&postcount=135
http://www.forexfactory.com/showpost...&postcount=151
http://www.forexfactory.com/showpost...&postcount=158
http://www.forexfactory.com/showpost...&postcount=200
There's nothing new about the system I'm going to introduce here. I just tried to describe it with some strict rules as possible.
The beauty behind this system is that initially it does not rely heavily on indicators. There is no such thing as "I go long or short when indicator 1 does this and indicator 2 crosses such and such a level." I think this approach is inherently wrong because when you rely solely on indicators, they don't give you an idea of where the price is going.
Only use the indicators to guide your input after you've checked the PA and know the mode or model you're playing. Whether it’s a double top or double bottom, a head and shoulders pattern, a 1-2-3 pattern, etc.
Start with the visual tools - trendlines, divergence, S/R and Fib levels, then jump in with the indicators.
I don't know how to emphasize this further, but once you have this idea in your head, you can use any metric you like in your entries.
For our PA examination we will use trend lines and divergences . But before I explain the system itself, let me touch on some important general stuff.
General information:
1. Timetable: I use 5M TF. It best suits my needs as an active day trader. This doesn't mean the system won't work on other timeframes, but initially this thread is intended for day trading.
2. Timing: I recommend looking for trading opportunities during the following market times: 5 GMT – 8 GMT and 11 GMT – 15 GMT. This is what the pros do, so instead of inventing the wheel, do what the people who actually make money on Forex do. One of the best threads I got from FF - Sonic R thread (http://www.forexfactory.com/showthread.php?t=114792). Also Dean Malone does this on compassfx. So if for some reason you don't believe me, go read what these people are telling you.
3. Trading Pairs: I only trade EURUSD using this system. Again, this does not mean that it does not work on other currency pairs, on the contrary, I believe that this technique must be mastered first so that you do not miss out on trading opportunities on any currency pairs. Only add more pairs if you think you can use at least one pair effectively.
template:
Here I will describe the indicators I use and why I use them.
1. MACD (12, 26, 9) – I use this to spot divergence and trade based solely on its direction.
2. Random(5, 3, 3) – I use this to find divergences that MACD doesn’t recognize.
3. EMA 20, 50 and 200 – I use these to identify visual trends.
4. IB (Inside the Bar) – I use this indicator to find areas of low volatility in the market.
5. Fractals – I use them to identify retracements and points for drawing trend lines.
6. Semaphore (8, 13, 34) – I use this indicator to identify price movements and points for drawing trend lines.
7. Pivot D_v5 – I use this indicator to identify intraday S/R level and TP level targets.
------------------------------------------------------------------------------------------------------------------------------------------------
renew:
Please read post #42 for other entries we considered in this thread: http://www.forexfactory.com/showpost...1&postcount=42
Read the following posts for some other helpful information:
http://www.forexfactory.com/showpost...&postcount=135
http://www.forexfactory.com/showpost...&postcount=151
http://www.forexfactory.com/showpost...&postcount=158
http://www.forexfactory.com/showpost...&postcount=200
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