How To Successfully Trade the 5 Minute Charts
#514: How To Successfully Trade the 5 Minute Charts
In this video:
00:33 – Should I look to scalp the market?
01:20 – Any Pair and any Market and any Time frame chart
01:53 – Most people don’t know when to look or what to look for
02:33 – Only take Continuation patterns
03:07 – Examples of Continuation patterns
04:11 – It’s all about the strategy
04:22 – Blueberry Markets
05:02 – Masterclass and book a call to chat with us
Should you consider trading the five minute charts? It’s a question I get asked very often. And just this week, one of our clients has posted some amazing five minute chart trades on our forum site, and I like to share details about that right now to help you. Let’s get into it.
Hey there, traders. Andrew Mitchem here at the Forex Trading Coach with video on podcast number 514.
Should I look to scalp the market?
Now quite often I get asked the question, Andrew, should I look at scalping? And scalping is trading shorter timeframe charts when you’re generally in and out of the market relatively quickly and most of the time I say the people don’t do it.
Stay away from anything from one hour charts and below because most of the time it consumes you. It’s lots of noise, lots of whipsawing around and the price action. And unless you know what you’re doing, it’s probably going to eat you alive. It’s probably not a great idea. And really it comes down to each to their own. You know, I much prefer personally the longer timeframe charts with the higher rewards risk looking less often. But we also have to acknowledge that not everybody wants to do that.
Any Pair and any Market and any Time frame chart
And the fantastic thing about my trading strategy is it can be applied to any currency pair, any market and any timeframe chart. Now, just this week, one of our clients, David, has posted for amazing five minute chart trades on our forum site. So David is only looking at his charts just three days a week and only for about an hour or so per day.
So it’s really important that if you are to look at short a timeframe chart such as the five minute charts, you do not make this like all time consuming.
Most people don’t know when to look or what to look for
The issue that a lot of people have is they don’t know when to look, they don’t know what to look for. And then because they’re sat there looking, they kind of bring emotions in trades and they feel like, Oh, I’m here right now.
I have to find a trade. And that becomes quite a dangerous thing. It’s like years and years ago when I started trading on dial up Internet and same thing. You finally got the Internet to work. And I thought, Right, I’m on ready to go now. Where’s a trade? Let’s make it happen. And of course, that’s not the way to trade.
So you know, fast forward and luckily we don’t have dial up any longer, but there’s still the same kind of issues that you must get away from. The fact that just because you’re there don’t force a trade to happen.
Only take Continuation patterns
So let’s get back to David. What David has done very sensibly is he has chosen to only take continuation trade patterns.
So here at the Forex Trading Coach, we take reverse patterns and continuation patterns. Reversals are pretty cool. They look really good on the charts as being a big uptrend and then the we looking to sell or there’s been a big downtrend. You’re looking to buy. That’s fine on the longer timeframe charts, but on the shorter time frame charts, a continuation pattern is a far safer, higher probability way of trading, and that’s what David has chosen to do on the four trades that he’s taken this week.
Examples of Continuation patterns
So as an example, there’s been an uptrend, a pullback, and then he’s looking to ride that up again or there’s been a set downtrend, a pullback, and he’s looking to ride that back down again once he sees the patterns that we teach and everything else that we talk about as part of the Forex trading Coach Course. So awesome to see.
David. The other thing is he’s on the allocating an hour per day to look through the charts and that’s really important as well. Just select the time that works for you. Go and have a look at the charts. If there’s a trade there, fantastic target trade. It is not. Don’t take one. He’s also looking for a variety different time for and chances.
Trading with the main trend as mentioned with a continuation patterns is also trading with the bigger picture because we talk about daily strength and weaknesses as well. He’s using the round numbers and everything else that we talk about. So he’s using the strategy perfectly just on a very short timeframe chart and he’s in and out of trades within three or four candles.
So, you know, sort of 15, 20 minutes in the trade, out of the trade done. And he’s had four from four profitable trades this week.
It’s all about the strategy
So it just proves that if you have the knowledge and the information and most importantly, the quality of the strategy, then five minute charts are absolutely fine, if that’s what you want to do.
If you’re either looking for a good broker, I can highly recommend Blueberry Markets, their based over in Australia, and I’ve been with them for a number of years and hundreds, if not thousands of clients and people watching videos and podcasts that have gone through them and through listening to me talking about them. There are great bunch of people, awesome platform, the MT4 and MT5 platform.
The MT5 platform has so many instruments in different markets. It’s not funny and have a look at them. If you are out there considering looking for a good broker to put your funds with and to trade through, I’ll put link to blueberry markets here.
Masterclass and book a call to chat with us
I’ll also put a link to our masterclass and if you’d like to have a chat with either myself or one of my team, I’ll put a link here that you can book up a 30 minute call and discuss your trading and how we can help you make sure you take advantage of that.
And we’re now offering that seven days a week. So book a time that suits you with one of us and we can help you to progress through trading.
This is Andrew Mitchem here, the Forex Trading Coach, and see this time next week. Bye for now.