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5 Min MA Intraday Trading System (Update)

This document outlines an intraday trading system using 5-minute candlestick charts with EMA and SMA indicators. It describes the chart setup including indicators to use, as well as trade criteria involving EMA crossovers and angle indicators. For entering trades, it recommends using market or limit orders within 1-2 pips of the 21 EMA, with stops 6+ pips away and taking profits at 10-15 pips. It also provides additional considerations for managing risk, including waiting for pullbacks, trade width and trends, and limiting the number of consecutive trades or losses.

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Budi Mulyono
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362 views2 pages

5 Min MA Intraday Trading System (Update)

This document outlines an intraday trading system using 5-minute candlestick charts with EMA and SMA indicators. It describes the chart setup including indicators to use, as well as trade criteria involving EMA crossovers and angle indicators. For entering trades, it recommends using market or limit orders within 1-2 pips of the 21 EMA, with stops 6+ pips away and taking profits at 10-15 pips. It also provides additional considerations for managing risk, including waiting for pullbacks, trade width and trends, and limiting the number of consecutive trades or losses.

Uploaded by

Budi Mulyono
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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5 MINUTE EMA INTRADAY TRADING SYSTEM

1. THE CHART SETUP:

1.1 5 min candle chart - EUR$, GBP$ & JPY$ pairs

1.2 10 & 21 EMA & 50 SMA on the chart itself

1.3 SMAangle & PhillipNelexpert indicator (post #399 on page 27 of thread & page 39)
downloaded from thread & 21 EMA based on first indicator data on this indicator
1.3.1 Draw horizontal line on 0.1, -0.1, 0.2 -0.2 level of SMAangle indicator

1.4 The EJ_CandleTime(1)H indicator from the 4h MACD thread to look at the time left
before closure of current candle.

2. THE TRADE CRITERIA:

2.1 Wait for the 50SMA angle to be more that 20 degree

2.2 Wait for 21EMA on SMAangle indicator to cross the 0.1 or -0.1 line

2.3 Wait for price to pull back through 10EMA to 21EMA (war zone)

2.4 SMAangle bars to be higher or lower than 0.2 or -0.2 line

3. THE TRADE SETUP:

3.1 Use a market order to enter 1-2 pips from 21 EMA

3.2 Buy limit order:


 Criteria 2.1-3 are met
 When price is close to 10EMA, put buy limit order just 1-2 pips above
21EMA

3.3 Sell limit order:


 Criteria 2.1-3 are met
 When price is close to 10EMA, put sell limit order just 1-2 pip below
21EMA

3.4 Put Stop Loss 6+spread pips away

3.5 Move stop loss to breakeven after a clean 6 pips gain/profit (brokerage/spread
included

3.6 No Trailing Stop Loss

3.7 Put/activate profit limit on 10-15 pips


4. ADDITIONAL ISSUES TO CONSIDER:

Trade criteria (Bullet 2) must be met – then consider the following:

4.1 First pull-back to 10MA:


• Consider taking the first trade (comply with set-up criteria) when price have a pull
back to 10EMA – price tends to bounce off 10EMA first
• Be careful – very risky

4.2 Wait for two candles to enter trade/war zone (between 10 & 21MA):
• Wait for two candles to make contact with/enter the war/trade zone on the chart
before consider entering a trade.
• Not necessary to open or close in the war zone

4.3 Look for the width between the 10 & 21 MA:


• Be careful when the width between the two MAs is larger than 10 pips.

4.4 Look for the length of the current trend:


• Be careful when the current trend is running for 70-100 pips without a pull-back
– trend could run out of steam shortly

4.5 Profit not triggered within 5 candles close trade:


• If your profit is not triggered within 3-5 candles, consider taking profit/break-even
as soon as possible.

4.6 Close trade when there is close above 21MA:


• If there is a close of a candle above the 21EMA in case of a short trade and below
the 21MA in case of a long trade, consider taking profit quickly or take break-even
trade.
• Consider not taking any more trades or wait for pull back from 50SMA

4.7 Only two trades:


• Only take the first two trade set-up in the London trade time and the first two trade
set-up in the USA trade time per pair

4.8 Two consecutive losses:


• After two consecutive losses, stop trading for the day

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