JAPAN: Watching for a Gart Set Up?
Let’s see if this gartley forms and if we can catch it.
Please remember, we can only plan a possible trade coming up but it is up to the market to form it or not. A lot of times our “predictions” will be wrong, we are not in the business of “predicting” or 'being right" we are in the business of “making money!”
FROM SWING TRADING TO DAY TRADING WITH THE KISS PRINCIPLE
After quite a few unsuccessful trades I was able to recoup and profit from Day Trading last week.
For quite some time I have been trying to transit from Swing Trading to Day Trading.
For one simple reason, 'I like quick results". i am used to have quick results due to my pro-punting.
In horse racing you know if you won or lost in just a minute.
Unfortunately I hadn’t been successful…until now!
Last week alone, I made 50 units of betting and I only traded the Asia Market. This week I intend to completely eliminate all Swing trading and only do Day Trading and will attempt to trade as much of the 3-sessions as possible.
Attached is an example of my last trade (out of three) I took on Friday at 16:30.
The unfortunate thing for all of my followers is that because I will be trading the M5 chart by the time you guys get my post it will be too late.
HOWEVER, the good news is that you will be able to learn and follow my method from all these trades.
CROSSES: AUD/USD or EUR/USD
TIME FRAME: 5min chart
EMAs: 21, 50, 100
Rules: The same as my usual principle: Fib Retracement to 38/50/62/79; Candle Signal; Inside the Correct EMAs “zone” (instead of using Trend Lines)
However, there is more. I do not just enter trades based on the above. I use what my wife calls “the babushka doll method”. I use a Higher Time Frame to define how far I can run my profits for. Otherwise, I use Fib 162% or 127% as Target
#Trades: One trade at a time, One Chart at a Time, One Day at a time (from the movie “Creed”)
Money Management: 1% per trade
All formed a double M30 Bear Candles Signals at the M30 EMA100 & Fib 786% convergence
So we entered long on all these three crosses with multiple targets
I will keep adding to this leg (if it runs off to its Fib 127/162) using the M5 chart swings
Let’s have a jackpot day…
EUR already at BE and free rolling
Oops: correction I meant “entered short”
Wednesday 28/9: Two short trades entered so far
Trade 1: Profits 6x
Trade 2: Freerolling TP at 3x
Both trades where entered in the M5 charts
Trade 1: Waited for a M15 candle, fib and EMA convergence. TP at M15 Fib 127. Stop and TP marked with yellow horizontal line.
The market hit it by the pip 
Trade 2: as shown, currently sl at b/e so trade is a free roll. Cost 7 pips TP 27 pips at the previous M30 Fib 162 extension.
I AM LOVING IT! NOw I know why day trading is so popular…
By using the M5 to enter a trade, following a M15/M30 candle formation, I can buy or sell as much as 5times the amount of units compered to Swing Trading using the H4/H2 charts alone.
Of course this is quite obvious, but it was always easier said than done.
On the other hand, trading purely on the M5 chart swings is costly! Because of all the noise, so the trick is to
MULTI-TIME FRAME DAY TRADING STRATEGY
SHORT TRADES:
STEP 1: M30 EMA 21 <50 <100
STEP 2: Draw Fibonacci from the recent M30 swing high to the M30 swing low
STEP 3: Wait for the market to form a M15/M30 Bear Candle Signal at Fib Level 62/79. Or at Fib 38/50 + hit M30 EMA
STEP 4: Switch to M5 chart (but keep the M30 EMAs on the chart)
STEP 5: Wait for the first swing rally with a M5 Bear Candle Signal (this will happen right after the M30/M15 bear candle that formed in Step3).
STEP 6: Enter short with stop at M5 Bear Candle high +1.5-2.5 pips (use the latter when Market has hit between two fib levels)
STEP 7: Set the TP at one of the following:
TP 1: M30 Swing Fib Ext 127%
OR
TP 2: M5 Swing Fib Ext 162%
OR
TP 3: M30 Swing Low
OR
TP 4: Fib Extensions Convergence (this will usually happen on the next set of trades when going from M30 FE 127 to M30 FE 162 for example
Usually this will mean anything from 4x to 10x
Happy trading 
The SINGLE TIME FRAME DAY TRADING STRATEGY is a lot simpler but one must be careful bot to lose sight of the bigger picture. I experienced a little bit of that last night, luckily I still made profits but the volatility was high specially between 16:30-00:30 due to the fundies. I almost lost sight when I went long in the M5 luckily made a quick profit, but trading against the M30 trend is NOT the way I want to trade!
By the time I finished writing this post my TP just got missed by a pip so I closed the second trade at 2x.
SHORT AUD M15 CHART WTH M5 ENTRY: @ B/E
currently SL at B/E (freerolling) but if we get stopped out prematurely or it moves to a higher Fib then we re-enter short later on
THURSDAY 29 SEP 2022: AUD/USD: SHORT DAY: turned at 6436 (so +60p net or 10 bugger!)
The H2 has formed a nice Harami at the Convergence of DTL & Fib 50% of the larger main Down Swing, which is also a Past Resistance Level.
The picture show the following (sorry hard to explain my thoughts, but it is much easier than this!)
First False M30 Signal at 00:30 (red vertical line) at H2 Fib 38.2%: Notice however that we had to wait for Step 5, which didn’t happen, so no entry!
Second False M30 Signal at 2:00AM (second red vertical line) between H2 F38/50: Notice once again that Step 5 is critical here, since the market doesn’t go down then rally back up and form a new high "below the last M30 candle high’, once again since Step 5 didn’t happen, then ‘no entry’… and we save some $$$
If we ignore STEP 5, and just enter on the first M30 signal at the Fib 382 we lost, then we enter again at 2:00am at the next M30 candle, we lost again!
First Real M30 Signal at 3:30AM (1st green dash line) at H2 F50% & DTL: Now we are talking!.
Once this M30 Bear Dark Cloud Cover closes at 3:30, we wait for Step 5 to occur. The market had gone down (when forming the M30 DCC), hits the M5 EMA 25 (not that we care), rallies once more and forms a M5 little engulfing candle at the M5 79% (I hadn’t drawn this Fib coz it will cloud the other charts!) But to explain you draw it from the last M5 high (which formed before the Green Dash line), to the last M5 low (the one hitting the M5 EMA25). Anyway, this entry (“S” arrow) costs only 5 pips!!!. And the market doesn’t go near our SL (0.65313) and with a 5pip entry cost for a M30 (at this stage) Trade this means a huge R:R potential!
Second Real M30 Signal at 5:00am (2nd Green Dash Line): We already entered the trade, so this is just a confirmation that the M30 Signal has a good chance plus that the H2 may form a Bear Candle to boot as well!
First Real H2 Signal at 6:30am (Solid Green Line): Now we are talking!. If we missed the first or even second M30 signals, or are trading using the H2, now we can look for entry (after the Solid Green Line) in the M30, and this happened just one hour later at 7:30 when we have a Bear Engulfing M30 candle! This trade only costs 7pips! Still pretty good for a M30 trade!
KEY POINTS TO REMEMBER:
(1) If we have a H2 signal trigger, then we look at the M30 for entry
(2) If we have a M30 signal trigger, then we look at the M5 for entry
BABUSHKA DOLL METHOD… LOL
(3) ignore the EMAs 25 & 50 when looking at the M5 for entry. All we are looking for here is the Swing + Fib + Candle combo. The EMAs as IRRELEVANT.
When we start with our first entry from a H2 Trigger, then the H2 EMAs are the only one that matters
When we start with our first entry from a M30 Trigger, then the M30 EMAs are the only one that matters
The M5 EMAs are completely IRRELEVANT.
Unfortunately my software doesn’t allow me to overlay the H2 EMAs on the M30 & M5 charts. I believe MT4 or other softwares out there allows for this.
I have to create multiple charts to do this, to clear up my chart, but we play with what we got!
Now, all this mambo jumbo leads us to today. I entered my trade on one of the swings at 8:49am, I was meditating! The perfect entry was a bit earlier. Anyway, my trade is at 6 pips risk.
ATM the market is past the H2 EMA 50 which could’ve created a temp rally and stop us out, but it seems we might be clear.
TODAY’S PLAY:
For those of you that are on the sidelines, we have a plan!. We will be looking for a 618% or 786% retracements of any M5 Down Swings throughout the day.
How far down we can go, you ask?
We have a few key areas to watch out for but since this is a H2 TRIGGERED TRADE, then only a H2 Bull Candle at any of these points can mean a full profit take or at least a Stop Protection using the M30 Last Swing High… (mouth full!)
Risk: 6 pips
H2 Fib 61.8% Support at 0.6426 (80 pips from my entry lucky those in USA! that caught earlier)
H2 Fib 78.6% Support at 0.6398 (111 pips or 18:1 )
H2 Low Support at 0.6363 (145 pips or 24:1 )
IF we pass the above then we are up for a nice jackpot day! since the next actual Take Profit Target would be the H2 Fib 127% Extension at 0.62718 (237 pips or 40:1) and beyond this the H2 Fib 161.8% at 0.61537…but let’s not get carried huh?
CAVEAT: No matter how much we think we know, the market will always do its own thing. We could have a bunch of H2 Swings, a retest to the entry level, etc, so any M5 Swing Trade I enter from here on, will target its own M5 Fib 162% (as per the options listed on Step 7)
GOOD LUCK AND LET THE FOREX GODS GUIDE US TODAY!
AUD/USD
After a perfect entry on the AUD & CAD (EUR & GBP ended up S/O at B/E) we are now targettIng the H2/H4 F127 on both.
EUR/USD
Meanwhile we will turn our attention to the EUR/USD which has formed pretty much the same set up on the Day Chart as the AUD did last Friday. But this time the Day Candle is much clearer: Harami. So we expect the EUR (and possibly the GBP as well) to move South following the AUD & CAD. BUT as usual, this is our analysis and we can be right or wrong. We’ll soon find out
THE PLAN:
(a) Enter SHORT at opening using the M30/M15 chart to set up our S/L
(b) IF market gapped down, we will set up a Limit Order at the Friday’s close AND seek to enter SHORT using the M5 chart. Whichever happens first.
MON 03/10/22: SHORT ENTRY: M30 TRADE M30 F127 TP1
RISK: 27 pips TP F127: 88 pips
GBP/USD:
Unlike the EUR/USD, this cross has not formed any candle signal (all we have currently is a Doji) that might be turning. This can mean that the next day candle will be a bear engulfing (eve star) or it will continue north (meaning we will be also wrong with the EUR/USD)… There are some H4&H2 bear signs plus not to mention that we are at a strong resistance level (like the EUR/USD)
So we will watch this one for an entry as well.
MON 03/10/22: SHORT ENTRY M30 TP1 127:
RISK: 45 pips TP1 F127: 185 pips
NOW WE WAIT…
TUE 4, OCT 22: AUD SHORT: Profits Taken. @17:30 we will get further confirmation that we are now moving to a Green Zone… (already taken some small profits on the way up since 16:30)
At 9:30 the H4 candle formed a Bear Harami at Resistance Level (time marked in dash green line)
Any entry on the M5 Swings from here.
We are targetting the H4 EMA21 support which coincides with the F38%
TUE 4 OCT 22: AUD LONG:
Now during the UK session it seems we are going to be looking for LONGS pretty soon. The H1 already has formed a Bull Eng plus the EUR we know is already moving north.
Regardless at 17:30 the H2 Candle would’ve formed a Bull Eng as well plus the H4 a bull doji or hammer.
This puts us on the Green Zone. We will enter long as per our strategy on the 1st M5 Swing at a 76% Fib preferably or at least a 62%, which we believe should happen since most hammers are usually tested.
We took a few pips long but a H1/H2 Fib 79 and Res turned us to red zone (short)
Kiss stands for “Keep it simple, stupid.” However, it is unclear. Please elaborate so that we can learn something new.
Hi HoodeBender, thank you for watching. As much as I try to make trading “KISS” it is hard still to explain simple concepts in writing. I will try in the near future to post a video. I have recently moved from Swing Trading to Day Trading simply because it suits my personality better, yet I am still trying to describe what is in my head.
So be a bit patient and as I move along (I am currently extremely busy with my house build), I will be posting step by step and/or videos of sample trades…
Here is a short version:
Step 1: Find a H4/H2 Candle Signal at a significant S/R. e.g. at a Fib 78.6%
Step 2: Instead of entering the trade immediately after such signal, we wait for the first Retracement Swing in the M5 chart. This will give us a “cheaper entry” by means of having our Stop at the High/Low of such M5 Swing instead of the H4 Candle Signal.
Step 3: Target either the M5 Fib Ext 162% or if one feel that the H4 Signal is strong enough (ie is in clear direction of the trend, bouncing of an EMA and/or TL as well) then one can target the H4 Swing Fib Extensions. The TP is up to each trader’s personality.
Below I am posting my next trade. Even though it is my method, the Day Trading is new, and I am still mastering it. Today I hesitated with the H2 & H4 Signals on both Gold and AUD (which usually move in same direction), and got lost with the M5 “noise” so I didn’t enter until the next swings…
Hope I can make your learning easier moving forward
Thanks for being a follower
TT
THU 6 OCT 2022: UK SESSION
This morning I missed out on a nice entry at 9:00am after having a H4/H2 Bull signal in the AUD and Gold. So I have been waiting all day for direction. Finally at 17:30 the H4 & H2 in both AUD and Gold provided such direction. A failed up swing at the 79% with a Bear Engulfing H2 and same H4 coincided.
BUT, I was hesitant, so I didn’t enter when shown by the arrow. I entered once we went below the M5 EMAs. But the risk is quite minimum since I used the M1 chart for these entries.
Anyway, as I mentioned above to our reader, I will try (this will be AFTER I settled in my new home sometime in november I hope!) to prepare some videos explaining step by step this simple method.
I believe is simple, because in reality I only use Candles & Fibonnacci, plus the H4/H2 EMAs to help me determine if we are trending or not. I have opted to not get mixed up trying to also trade the M5 (this is my second strategy) at least not yet. First I am mastering the “1st M5 Swing Strategy”… But Like I said, please be patient and I will try to post my 2 strategies in the near future.
AUD:
STEP 1: At 17:30 AUD completed a Bear Piercing Pattern at major Resistance Level
STEP 2: Right after 17:30 we start looking for a retracement in the M5 down swing. at a Fib level + M5 EMAs convergences. This happened at 17:55 (black down arrow)
We go short with target at the M5 F162% or further. The TPs are up to each trader!
GOLD: Pretty much the same for Gold, except that the first swing actually formed a “Double Top” in the M5 with a beautiful Shooting Star turned into Evening Star (18:30-18:35) Black down arrow.
THE IDEA OF MY "1ST M5 SWING’ STRATEGY is to “Enter after the H4/H2 signal formed BUT at a much CHEAPER cost in pips” this allow us to buy or sell more lots than otherwise we would have using the H4/H2 candle high/low for stop loss.
**FRI 07, OCT 2022: AUD LONG: 1st M5 Swing TPS 127 & 162 HIT
Post Trade Note: we were stopped out by 1-pip! This is because I entered this trade prematurely using the 61.8% rather than the 78.6% as per my rules! If the market price is not bouncing of the M5 EMAs then it must be a min 78.6% Fib that we use
So we re-entered on the 78.6 candle confirmation only 10’ later!
New trade is now at BE! 
Strategy**
Entry: 0.6412
S/L: 0.64057 (6.3 pips)
TP1: 0.64293 (17.3 pips) F127%
TP2: 0.64365 (21.3 pips) F162%
Step 1: H4 Bull Harami formed at 9:30am
Step 2: M5 Bull Piercing Pattern formed at 9:35am at F61.8%
Re entry:
FRI 7 OCT 2022 16:15 SHORT #2 TP HIT
This is on top of our previous entry. Also now at B/E…
with the 1st trade at +4pips currently
Sorry but being a H1 > M5 trade it is hard to update posts and explain them quickly!
STEP 1: H1 BEAR HARAMI @ 15:30
STEP 2: M5 BEAR HARAMI @ 16:15
STRATEGY #2: M5 EMAs
Now that we had our few wins from my STRATEGY #1: 1ST M5 SWING, we have the opportunity to keep entering short using my STRATEGY # 2: M5 EMAs
As shown…
Note: However we have to be careful at this juncture. There is strong Support and I would prefer to wait and see.
I prefer to trade my Strategy #1 mainly, simply because it has a much higher win rate (at least so far) and this is because it works even in “choppy markets” like we had recently
It is "choppy"at the higher timeframes but we always have a “1st Swing in the M5” to trade and get out quickly at its correspondent Fib 162
I think this is it for me for this week
Have a great weekend!
