Does anyone trade off of the 5 minute chart? - Page 2
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  1. #11
    Join Date
    Jul 2012
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    100
    Quote Originally Posted by ClarkFX View Post
    What do you mean by "market microstructure"?
    Yes Patr8der the details is what I am interested in.

    I like to be right on time to the move, so if I am zoomed in and I begin to see a Rounded Top, Bottom, or H&S forming in the 5 min chart, it provides additional edge.

    Zooming in also helps me to keep risk smaller I have found. There was a time in the past, where I would put my stop at the bottom or top of the previous 4 HR candle, but now I can see where that was taking too much risk.

  2. #12
    Join Date
    Aug 2012
    Posts
    6
    I think the distinction can be found in the encounter of dealing lengthy lasting and dealing temporary. There is a distinction between the encounter that you get from each one, even if the system you're having is just the same. Try to perform around more some time to perhaps you'll experience the distinction.



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    Last edited by adam john; 08-16-2012 at 02:31 AM.

  3. #13
    Join Date
    Apr 2012
    Posts
    1,184
    Yep, I trade 5m charts every day, along with 1hr, 4hr and dailies.

    I actually share some examples in my thread Forex Price Action of some live trades I took which you can take a look at (white charts in the thread).

    Feel free to take a look and ask what questions you may.

    Kind Regards,
    Chris

  4. #14
    Join Date
    Jul 2012
    Location
    Asia
    Posts
    279
    My head will explode if trade on m5 tf. °=°

  5. #15
    Join Date
    Nov 2011
    Posts
    398
    I do look at M5 chart's for entries. Analysis is done on the longer time frame's though.

  6. #16
    Join Date
    Jan 2014
    Posts
    24
    IMO as newbie you should start with long timeframe atleast daily after you can make consisten profit then you can start to drilling short time frame, hope this make sense

  7. #17
    Join Date
    Jan 2014
    Posts
    13
    I have an experience using 1m chart for EA. The result is bad. I'm losing my money. So my advice is only using minimum 1h chart to watch the market trend.

  8. #18
    Join Date
    Jan 2014
    Location
    Stockholm, Sweden
    Posts
    11
    I trade the M5 exclusively. I may check the daily to get a "feel" for which way the market will be likely to trend but it's not really important. Generally the lower the time frame the more entries the market will print per day i.e. the M3 will print more entries than the M15. This means more losers as well as more winners though remember! Also your SL will have to be wider and therefore your position size smaller to keep the dollar risk the same.

    Let's say (for an easy example) your strategy is to trade one-bar reversals (a.k.a. hammer/pin/kangaroo tail etc) at resistance levels. Your SL would have to be just below/above the tail (a.k.a wick/shadow), right? Well on the M5 the bar might be 150-200 pips tall so you could trade one lot (10,000) and your risk would be $150-$200, but on the D1 chart the bar could be like 1000 pips tall so your position size would have to be much smaller to keep your dollar risk the same! Make sense?

    Also, in the above example, on the M5 one would only have to wait like half an hour to see if the trade worked out and started moving the right way, whereas on the D1 you could be still sitting there like two weeks later waiting to see if you were going to make a profit!

    For these reasons I can recommend PRACTISING trading on the M5 or M15 time frames.

  9. #19
    Join Date
    Feb 2013
    Location
    Scotland
    Posts
    4,999
    Like others on this thread, I try to use longer time frames but I do use the 1m and 5m time frames if I am watching a piece of news coming on air, and want to see the market's reaction to that; sometimes this will mean that I decide to jump in after the news fade (=first four 5m candles), or sometimes it just means that it confirms the general trend. I always zoom out, even on the 5m chart, however, because there may be a small resistance level just a few hours before; I then confirm that with, say, a 4H chart, and eventually return to the 5m to get the best entry.

    I definitely think that there is nothing like the 5m and 1m time frames to get an immediate feel for market reaction to news items...

    Nice/useful thread. Thank you.

  10. #20
    Join Date
    Sep 2013
    Posts
    215
    Quote Originally Posted by bobia View Post
    I'm more of a long term trader and I was just playing around on a demo account with a 5 minute chart and seemed to do pretty well. I know it can't be this easy. What are the downsides and advantages of trading such a short time frame?
    I think scalping is a very profitable trading method. Grabbing 5 to 10 pips per day with a high leverage could be very lucrative. I use the 5mins chart often and I am very good with it.

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