Snake-Eye Trading Method | Foreign Exchange EA Download- MT4/MT5 Resources

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Snake Eyes Trading

This method uses the same techniques used by professional floor traders and is based on what the 5-minute bars are indicating at any given time.

Chart Settings <br> Just set up and reference these three charts, nothing else:

5 minute bar chart:
Set the 8-period simple moving average to "low" and the 10-period simple moving average to "high" - configured with a bar chart. This is the main chart for finding trading setups.

15 minute bar chart:
The configuration is the same as 5 minutes. This chart is mainly used to determine trend direction and is not used as a basis for trading.

Moving Average <br> These are used to help determine the strength, weakness or neutrality of a market as well as the direction of the market.

When price trades above the 10 moving average on the 5-minute chart, and at least one full price bar closes above and at the top of the line, it signals strength, signals potential upside, and may form a long trade.

When price trades below the 8-moving average on the 5-minute chart, and at least one full price bar closes and forms fully below the line, it indicates price weakness, signaling potential downside, and the potential for a short trade to form.

Whenever a price bar trades above the 10 moving average or below the 8 moving average on the 15-minute chart, it is a stronger directional confirmation than on the 5-minute chart.

Trend Direction <br> It is important to always understand this because you must always trade with the direction of the trend and never against it. The direction of the trend is primarily determined by reference to the 15-minute bar chart, where the price bars trade with reference to the 8 and 10 moving averages, as explained earlier.

The direction the moving averages point on the 5-minute and 15-minute charts is a good visual reference for determining the direction of the trend. An obvious trend direction may have been established for the day, but changes in the short-term trend will inevitably occur and will be indicated by changes in the direction of the moving average formation, whether it is up, down, or sideways.

Another indicator is whenever the moving averages on the 5-minute and 15-minute charts start to narrow and move closer together; this usually signals an impending change in direction. Later, they usually widen again to form what looks like a single shape.
Mouth, before changing.

set up

To recognize a good setup, you must first develop a "feel" for the market and market processes.

Go back to the basics and forget everything you've learned. Leave all indicators aside and just look at the 5 minute bars and their behavior, formations and patterns.

Further training is required to accurately and consistently identify the correct settings. However, the principle of this method relies on the inability of the current 5-minute bar to break above the previous bar's high in the case of a "short" setup, and the inability to break above the previous bar's low in the case of a "long" setup.

With experience and intense concentration in observing price activity during the formation of the current 5-minute bar, the immediate short-term direction of the market can be determined with astonishing accuracy.

Observing and counting the number of times the current price bar attempts to break above the high or low of the previous bar (or bars) can provide clues as to who is controlling the buyers or sellers.

For example, if the price bar keeps pushing up at the top of the bar, fails to move higher or break out of the previous high, and then closes, it is a sign that the price has met resistance at this level and buyers are drying up and losing control. If buyers have dried up, the path of least resistance is down as sellers have now taken over control. This is a time to sell because prices and the market are falling.

The same is true when the price bar keeps pushing and pushing down at the bottom of the bar, failing to break out and find support, indicating that there are no longer sellers and therefore the price is likely to reverse and move higher. This is the time to buy when the market reverses; strength builds and prices begin to rise immediately

The ratio of buyers to sellers determines the market direction at any given time. If you see a possible layout taking shape, don't take your eyes off the bar or you'll miss what it's telling you...you have to look at it very carefully. Once you decide this is a setup, don't hesitate, don't wait, jump in and make the trade.

Long time setup <br> To enter a long trade (buy), the price bar must be above the 10 moving average on the 5-minute chart, which indicates strength. At least one price bar must be fully formed, closed and at the top of the line to allow conservative trading – 2 price bars for more conservative trading.

Short setup <br> To enter a short trade (sell), the price bar must be below the 8-bar moving average on the 5-minute bar chart, which indicates price weakness. At least one price bar must be fully formed, closed and below the line to allow for conservative trading – 2 price bars for more conservative trading.

stop loss
Once you place a trade, place a stop-loss order that suits your personal risk tolerance. This method allows at least 2 points. This is important to give you peace of mind and limit downside risk.

Once your trade has gained a few pips, it is possible to move your stop loss to the break-even point, but care should be taken to avoid being stopped out too early and potentially causing you to miss out on the opportunity.

Exit a transaction <br> This may vary and often depends on each individual's personal experience, financial situation and risk tolerance. As a relatively inexperienced student trader, the conservative approach was to take 2, 3, or 4 pips and hold on to profits when they were profitable, even though the trade might continue to generate more pips. By taking profits in the early stages of trading, you will never lose money; taking small profits regularly builds confidence. Experience and increased confidence will enable you to stay with the company for the long term and earn greater rewards.

Congestion (choppy, choppy)
The Chop market is a very difficult market to trade and should be avoided once you realize you are at this stage. Never trade in volatile markets. Whenever the price bar trades in the channel between the 8 and 10 moving averages,
If there is no serious penetration or hold above or below them, then the market will be volatile. The price bar moves up and down between or slightly beyond the two moving averages.

Trends will inevitably become congested, and trends will also be congested, so whenever the market is congested, as long as you remain patient, wait and see, and wait for the next trend breakthrough, it will often provide a good trend.
If you don't change today, your tomorrow will be the same as yesterday.

Golden Rule • Never trade on a Greenspan speech or any big news day without lots of practice...until you learn how to trade volatility.
• Forget everything you learned from seminars and books - scrap all indicators and don't look at 1 or 3 minute charts.
• Never trade against the trend. "The trend is your friend", so only trade with it.
• Never trade in volatile markets (crowded).
• Always place a stop loss order (use a trailing stop).
• Never try to pick tops and bottoms – let the market tell you where it wants to go.
• Don't over trade, 1-3 good trades per day is enough.
• Don't be greedy.
• Do not have any distractions, TVs, phones, people, etc. while trading.
• Manage your money – withdraw all profits from your trading account at the end of each month. This way, your trading account won't grow too big and it will prevent you from making impulsive, foolish trades due to overconfidence.