Short-term FX trading with M5 charts

shadowninja · Sep 7, 2011

I've been watching EURUSD M5 charts recently for keener entries and it occurred to me that if you watch the price moving (what I call price action) and are willing to take a few pips here and there (10-15 with a tightish stop (15?); any big spikes in your favour are a bonus but not to be expected or planned for), you can profit even if you get the trend direction completely wrong.

I would be interested to hear what others who generally take less than 20 pips per trade on EURUSD or AUDUSD have to say...

This thinking comes about from my adventures scalping for 1 or 2 ticks on the sports markets.

shadowninja · Sep 7, 2011

I should add that I've taken very small trades with this in mind and my theory seems to be correct over the last few days where I have sometimes got the short term trend completely wrong, missing out on the nice 50 pip moves yet have not lost much relative to the size I was doing.

However, I would still be interested to hear from those who have been doing this longer term than a week.

shadowninja · Sep 8, 2011

Pah. I guess all you BSDs are grabbing 150 pips on Euro per trade, then.

wackypete2 · Sep 8, 2011

I've been using 5m charts for years. Works for me. All small short term trades. Usually 10-15 pip stops. Many times but not always I set a target that's further than I would like to get out at just for the reason you suggest... quick spikes.

Peter

shadowninja · Sep 8, 2011

Nice one. How many pips do you grab on average?

goose4 · Sep 8, 2011

Well i trade one min and five min chart and do very well.i trade with zero spread on four markets and 3 pips spread for gold and brent.I dont scalp either give what the market wants-if you know what your doing averaging 100 pips per day is possible.

shadowninja · Sep 8, 2011

Is this short term trading or do you hold for longer than a few minutes?

goose4 · Sep 8, 2011

shadowninja said:
Is this short term trading or do you hold for longer than a few minutes?

I trade what the market wants to give me.

Trading the one min chart for example on eurusd your looking at averaging 300-400 pips per week.So time is no factor for me.

great thing about the one min is you never really have choppy days especially trading 6 markets lol.

I trade bill Williams ideology but on one min chart.This means pyramiding with adding on to every signal.So at times you can have 2-4 open trades attacking a trend.So you can imagine them 150 points moves on gold on one min chart adding on.cut losses short go aggressive when winning.Trade what you see not what you think.Trading the one min bill Williams style you can make 2-10% per day.

Good luck.

shadowninja · Sep 8, 2011

Thanks for the tips. It's interesting. Will look into Bill Williams.

wackypete2 · Sep 8, 2011

shadowninja said:
Nice one. How many pips do you grab on average?

Usually 10-20 pips if price is moving in a slow orderly type fashion. In a fast moving market I'll hold out for more or my target gets hit. I'm not bothered by the r:r or other mumbo jumbo market ratios.

You can see my trading here: http://www.trade2win.com/boards/forex-discussion/75186-forex-trading-live-calls-set-ups.html

Peter

goose4 · Sep 8, 2011

shadowninja said:
Thanks for the tips. It's interesting. Will look into Bill Williams.

here is one of my charts.You put the effort in you can do this too.At times you got to turn your back at the crowds.I trade with a small team of my friends we all average over 100 pips per day with very small risk 10-15 on eurusd for example.

Splitlink · Sep 14, 2011

In general, my experience over the last 8 trades have born this thread out. It's early days for me, using this tactic, although I have been trading as a retired man's hobby for more than a decade.

advfntrader · Sep 14, 2011

surely trading lower timeframes is just the same as larger ones although things happen X times quicker....!?! all this "noise" stuff is just nonsense

Splitlink · Sep 14, 2011

advfntrader said:
surely trading lower timeframes is just the same as larger ones although things happen X times quicker....!?! all this "noise" stuff is just nonsense

There's a lot of "nonsense" said, isn't there? I'm just an elderly gent experimenting with something that I do not, usually, do. However, if it is profitable I shall find it enjoyable because it is only for a few hours and the day's trading can be closed and put away until the next morning.

Short-term FX trading with M5 charts

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