For some time I was trading 5 minute PA charts. I developed the strategy to trade only with trend and buy or sell on pullback. Each and every day my goal is to make 2% of my account.
This week I already made profits, so now I want to share it with you. Everything is very simple.
Find trend
Wait for pullback (ideally to previous support or resistance). To confirm our trade we need movement to our desired direction.
Leave some space trade to play out setting your SL further.
Taking profit at the recent high/low or at the next support or resistance area
Very simple and easy. Each and every day the same goal. If you cannot make 2% from trade one or even worse you lost wait for new opportunity and take new trade again and trade until you make your 2%.
Don’t forget to develop proper risk management and demo 1st!
How to identify trend?
Look from left to right, if price is making lower lows we looking for shorts, if price is making higher highs look for buy.
Do I use multiple timeframes?
Only to confirm pullback to support or resistance but trade only with 5min chart.
How to identify pullback?
When price move against overall trend and after that we can see sellers or buyers came back. Pullback also can be to previous support or resistance level.
What about news?
I am not watching at them at all.
At the moment until he expands more on his background filler it’s 33% of 3 Ducks which is another variant of a momentum driven trend following approach.
As dnagolf say’s, it’s nothing new, but that type of set up certainly lends itself to variety & flexibility when matching up leader/follower dual or triple timeframe combinations.
There are a hell of a lot worse approaches folks are currently using on here that’s for sure.
It is very good point; the thing is I only focus on making to 2% with proper risk management. If I can make 5 pips and it is my 2% of account I am happy and I am not trading anymore that day. Next week I am going to share all live trades.
How long have you been trading the spot market?
Scalping the M5 is not easy, even to more experienced traders.
Quite frankly, I’d argue that solely trading the M5, with the average retailers equity and access to spreads and lagging price charts is more frustrating and less likely to remain profitable in the long run.
Do you use higher timeframe charts for support?
A lot of times, newer traders can literally get lucky a few weeks in a row nabbing some good trades with tons of volatility market-wide. But, a few weeks later, they disappear from the forum, their myfxbook account is deleted, and most likely you won’t hear from them until 3-4 months down the road when they re-join a new website, under a different name, with a different strategy that’s been working for a few weeks…rinse, repeat…catch my drift.
I’m not trying to say scalping isn’t profitable or advise against it if you enjoy. Also not to proud to admit that I’ve been down the aforementioned road before. To each their own.
Wha I am saying is, you need to be aware of many moving parts when working on these smaller timeframes because price can chop around if you’re not able to understand context, environment on the larger time frame and the overall macro-economic factors which play into volatility (inflation, employment figures, GDP, etc).
I am trading market for 4 years, I found success with longer timeframes, but I have free time to watch the market so decided to trade lower timeframes also.
Yes, sometimes I use 15min charts to confirm pullback.
I totally agree with you! I just want to share and sharing for me will make sure that I am taking right trades, not rubbish trading or anything else. It will help me to stay keep on the right track. I hope this won’t happen to me!!!
I have recently taken a lot of interest in the 5 minute time frame as in theory you can obtain a return which may take you days or even weeks to attain in the higher time frames.
Looking at the charts you posted, do you not use S/R or a moving average for points of reference for taking trades? Also, what candle set up do you look for to enter a trade? and where is your entry in relation to the set up? Finally, which pairs do you favour?
