Five Minute Trade
This is another 5 minute scalping strategy that helps you improve trading. This system works on all timeframes and all pairs, but there are suggested timeframes on this system such as 5 minute and 15 minutes for short term trades. Thirty minutes, 1 hour, 4 hours and daily timeframes for long term trades.
Forex Indicators and setups:
- LaGuerre 1 (for entry) – Gamma 0.60, levels 0.15, 0.85, 0.45 bars to read 9500 color Blue (File name is Laguerre-ACS1.ex4)
- LaGuerre 2 (for exits) – Gamma 0.80, levels 0.15, 0.85, 0.45 bars to read 9500, color Red (File name is Laguerre-ACS1.ex4)
- For the Lags Enable fixed maximum (~1.05) and fixed minimum (~-0.05) on in the Common tab of the Laguerre indicator
- Bollinger bands – 20, 0 and close (default), this indicator is important to notice an uptrend and uses middle band as support and in downtrend it acts as resistance.
- EMA 200 (Red) and EMA 60 (Blue) to find support and resistance
- Pivot Points : To Find daily Profit levels and as indication of expected Support / Resistance areas for the day.
- MACD – Traditional – Setting of 12,20,9 – Crossover confirmation with Lags for entry and exit.
- StochHistogram – an indicator which shows the overbought/oversold status of the market.. Use default settings of 14, 3, 3.
Buy when the price crosses to positive.
Sell when the price crosses down to negative.
Green histogram means it’s an uptrend.
Red histogram means it’s in a downtrend.
For LONG entry on a 5 minute chart:
First Setup (Best Setup – Maybe able to catch moves of +50 to 150 pips)
For Long:
- Look if price is above the Daily Pivot.
- Look if the LaGuerre 1 also called Lag1) is above 0.15 and going upwards.
- StochHistogram (Henceforth called as Stoch) is gone from negative to positive.
- MACD is making a crossover to positive (Crossover above Zero Line)
- LaGuerre 2 also called Lag2 is at the bottom ( for Extended Period of time ) or trending upwards above 0.15 .
To exit the position there are multiple options and choose whichever option as per your take profit area.
- When Lag-2 crossed 1.00 and then starts to come down below 0.85
- When you get +50 pips
- Daily R1 – (First Resistance above Daily Pivot)
- Daily R2 – (Second Resistance above Daily Pivot)
- MACD crossover from Positive to Negative and Red lag is turning down
- When Stoch Histogram goes from Positive to Negative, and Red Lag is pointing down (both conditions have to be
met, if not take 50% profit and let the trade run ) - When the Stop Loss is hit (20 pips + Spread) – This is likely to happen only if you have not taken the trade as per rules or taken a trade 30 mins before or within 30 mins of news.
Rules for SHORT entry:
For Short:
- Look if the LaGuerre 1 also called Lag1 is below 0.85 and going downwards
- StochHistogram also called stoch is gone from positive to negative.
- MACD makes a crossover from positive to negative (Below Zero Lines)
- LaGuerre 2 (Henceforth called as Lag2) is at the top (for extended period of time) or trending downwards below 0.85
There are multiple options in this exiting this trade. You can choose whichever option you take profit.
- When Lag-2 crossed 0.00 and then starts to come up to 0.15
- When you get +50 pips
- Daily S1 – (First Support below Daily Pivot)
- Daily S2 – (Second Support below Daily Pivot)
- MACD has crossed over to positive and red lag is turning up
- When Stoch Histogram goes from negative to positive, and Red Lag is pointing up (both conditions have to be met, if not take 50% profit and let the trade run)
- When the Stop Loss is hit (25 Pips including Spread) – This is likely to happen only if you have not taken the trade as per rules or taken a trade 30 mins before or within 30 mins of news
Set stop loss to 20 pips for long and short trades plus spread from the best setup as per rules.
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