M5-Two-Way-Confirmation-Strategy

USDJPY, M5, 2011 June 08

Long @ 79.85

Target @ 80.05 (mS1)

EURUSD, M5, 2011 June 08

Stochastic Divergence at M5.

Long @ 1.4600

Stop Loss: 1.4580

Target: 1.4648 (DPV)

AUDNZD, M5, 2011 June 08

Long @ 1.2935

Target: 1.2976 (DS1)

Stop loss: 1.2903 (below the M5 Hammer, red candle)

GBPNZD, M5, 2011 June 08

Long @ 1.9962

Target: 2.0052 (mR1) / 2.0095 (DR1)

See #58

Exit: 0.8901

Profit: +14 pips

See #62

Stop Loss has triggered.

Loss: - 20 pips

See #59

LCrudeJul11, M15, 2011 June 08

Target has hit.

Exit @ 99.40

Profit: +129 pips

LCrudeJul11 could also trade excellent at M30 & H1.

See #61


Exit @ 80.03

Profit: +18 pips

EURUSD, M5, 2011 June 09

(H1: the upper line of BB has reached)

Short @ 1.4640

Pending Order - Short 1.4699 (mR2)

Silver, M5, 2011 June 09

Short @ 37.01 (mR1)

Pending Order - Short: 37.85 (DR2)

Hi Forexcube and thanks for this interesting system.

Can it be traded with more success, i.e. a higher percentage of winners, on higher timeframes like 4HR, daily and even weekly? I don’t see why not, but maybe you have developed it to be specifically traded on much shorter timeframes?

Since I hold down a full time job, I’ve found it hard to get into trading, especially with these short term systems that require lots of computer screen time. Monitoring the monitor so to speak.

The people at forexfactoty come up with a lot of good systems, but most, such as yours here, seem to be for shorter timeframes.

Hi Macdon

Yes you can trade it at higher timeframes.
See further: #76, #77, #78.

See also:
http://www.forexfactory.com/showthread.php?t=249257

Kindest regards
FXcube

GBPUSD, M5, 2011 June 09

Short @ 1.6434

Target @ 1.6414

Quick 20 pips

10x for this strategy /now I'm ordering the pizza /

T

See #69

Exit @ 1.4588

Profit: + 52 pips

Silver, M1, 2011 June 09

Switch at M1 and take the exit there.

Exit @ 1.3685

Profit: +16 pips

Multiple Time Frame Trading

M5-Two-Way-Confirmation-Strategy is a manual trading strategy. Trades could be triggered within different time frames also (e.g. M15, M30, H1, H4, Daily and then at all currency pairs) and can used in ranging and in trending markets. M5-Two-Way-Confirmation-Strategy has used since 2006. You can use M5-2-WCS in combination with the price action (e.g. engulfing patterns, hammers, shooting stars, in bars). It's simple and efficient! If you will get other arguments more, so look at the extreme points at the pivotal points. The EMA lines will show you apart from price action momentum and if there is either a trending environment or a ranging market.

It's easy to make pips in the downward movements with several enter shorts, say at M1, M5 and M15 with coincident H4 enter long trades.

Time Cycling

Trading Using Multiple Time Frames

by Umashankar Galla

Note: there are many forex systems that trade with more than 1 time frame. Why? It is usually to accurately time the entry to make the trade a "high probability" trade. Some systems however only trade one time frame such as daily systems as they look for broader and bigger moves in the currency market. Here's the article by Umashankar: Why do we need to Trade Using Multiple Timeframes?

To improve the efficiency of our trading strategy. We see the major Trend using a higher time frame than what we intend to use & a lower Time frame to enter a trade.
Say we want to trade using the Daily Charts. We take the Weekly charts to see the major trend. Suppose it's an uptrend in a Weekly chart. We will tend to trade only long positions. We will use entries in the daily charts to enter long positions only. When sell signals are generated we will just exit our long positions. I.e. we don't short sell.
Suppose it's a downtrend in a Weekly chart. We will tend to trade only short positions. We will use a entries in the daily charts to enter short positions only. When buy signals are generated we will just exit our short positions. I.e. we don't enter long positions.
Now that we are using two timeframes. Now coming to timing the entry of trades or adding additional positions. (Pyramiding). We can further use a Hourly chart to time our entries. Suppose the weekly & daily charts are in a uptrend. We will enter a long position or an additional long position when a hourly chart gives us a buy signal. Suppose the weekly & daily charts are in a downtrend. We will enter a short position or an additional short position when a hourly chart gives us a sell signal. This timeframe would not be used to exit the trades. It's solely to improve the timing for entry. For exits we would use the signals generated in the daily charts.

Using multiple time frames to trade.
We take three charts of the same security. First is the weekly chart. Next chart is the daily chart. Third chart is the hourly chart.
We will now use the daily chart to trade. We check the weekly chart for the weekly trend. Lest assume the weekly trend is up. So based on this information we will just trade long positions in the daily chart.
We look for a buy opportunity in the daily chart or we can see the hourly chart to enter a long position.
Now for entering additional positions we use buy opportunities in the hourly chart. We would exit based on the daily chart only, because we were trading based on the daily chart.

Similarly we can trade short where weekly charts are in a downtrend and daily chart generates sell opportunity. Additional positions are entered whenever sell opportunities are generated on the hourly charts.

For Day trading we can use the Hourly, 15 Min and 5 Min charts here we trade the 15 Min chart. Or we can use 15 Min, 5 Mins and 3 Mins charts here we trade the 5 Mins chart.

http://www.theforextrader.net/Tradin...ime-Frames.php

How to Use Multi Time Frame Analysis When Trading Forex, Futures, and Stocks

In our last lesson we learned about support and resistance and how to spot these levels in the market. We should now have a good understanding of how to spot trends in the market, some of the components that make up those trends, and finally how to recognize support and resistance levels. Now lets tie everything together we have learned thus far with the final concept of this series, Multi Time frame analysis.
No matter what time frame you end up using when trading the stock, futures or forex market or what time frame a particular strategy calls for, it is important always to have a big picture overview of what is happening in the market. Although there are exceptions, in general most traders will tell you that if your trade setup or analysis lines up on multiple time frames, then the odds of being correct are greatly increased.
Lets look at a simple example by looking for a trade to place to take advantage of a trend that we have spotted on a chart. For this example lets say we are looking at a 5 minute chart of the EUR/USD.


A 5 Minute EUR/USD Chart

http://s1.hubimg.com/u/149744_f520.jpg

A 5 Minute Forex Chart


As you can see from the above chart if we were just looking at the EUR/USD 5 minute chart then we would note the downtrend in the market and sticking to the simple strategy of simply following the trend, we would look for opportunities to sell into the downtrend.
As we want to have a better feeling for the general direction of the market however when we place this trade we next take a look at an hourly chart.


A 1 Hour EUR/USD Chart

http://s2.hubimg.com/u/149745_f520.jpg

A 1 Hour Forex Chart


As we can see from this chart we also spot a longer term downtrend on the hourly chart thus giving us more confidence in our potential trade into the downtrend on the 5 minute chart.
Lastly to make sure that we are getting the full picture we pull up a daily chart.


A Daily EUR/USD Chart

http://s3.hubimg.com/u/149746_f520.jpg

A Daily Forex Chart

When looking at this chart however we see that not only is the EUR/USD in an uptrend on the daily chart, it is in an extended uptrend. As the daily chart does not line up with the 5 minute and the hourly chart we may want to question whether or not to place the suggested downtrend trade in the face of the large uptrend on the longer term chart.
Now that we understand how a trading signal in the stock, futures, or forex market can be considered “stronger” if it lines up on multiple time frames, a more prudent way to search for potential trades may be to start by looking at the longer term time frames, and then look for opportunities on shorter term charts which are in line with what the longer term charts are showing.
The same concept applies when looking at support and resistance. In general the more time frames and the longer the time frame is that a support or resistance level shows up on the more “valid” that level is considered.
That’s our lesson for today. You should now have a good understanding of multiple time frame analysis and how looking at different time frames can give us more or less confidence in trades we are considering making.

http://hubpages.com/hub/How-to-Use-M...es--and-Stocks