The this presentation “Trading the 5-Minute Time Frame With Precision,” my aim to encourage simplicity and clarity in the trading strategies I use.
I will explain my approach trading the 5-Minutes time frame for a later day trading strategies, and then I will show you one from an early morning strategy using a gaping stocks list.
Keys to Success
My Essential components of successful technical investing and trading.
Price Is King - When analyzing trends and determining next steps, never lose sight of the actual price movement. Ultimately, price should drive every decision.
Candlestick Analysis - This graphing method likely presents information in the most transparent, easily graspable manner.
Trend and Multiple Time Frame (MTF) Analysis - Analyzing trends over multiple time frames offers the best chance at success by providing a more holistic analysis of price movement. Then, working down to the five-minute time frame serves as a highly efficient market analysis method.
Support and Resistance Analysis – Is a key component of Master Trader Technical Strategies and it was pointed out not to confused he use of moving averages as them being actual price support or resistance.
Moving Averages – I explained my unique method of calculating moving averages to determine which moving averages will display the trend of a higher time frames on the lower 5-minute time frame. These moving averages providing traders a focus on a signal time frame with the knowledge of trends in multiple time frames.
Volume Analysis - For me, volume analysis might be somewhat overemphasized. However, it serves as an excellent indicator of probable turning points.
Position and Money Management - Lastly, even the best chart reader may fail without sufficient position and money management skills.
Beyond these foundations that I discussed the importance of pattern recognition.
Although traders should be careful not to fixate on finding exact matches for textbook patterns, facility with these models greatly aids trend analysis.
Retracement - This pattern indicates that a stock’s price is experiencing a temporary reversal, counter to the overall trend.
Retest and Failure - Retest and failure patterns show that a price fluctuated for a moment before along the direction of the general trend.
Flag - Flag patterns indicate a sharp price movement closely accompanied by sideways movement.
Well-Developed Base - This pattern illustrates a relatively stable trend that gives traders a profitable support area.
If you have any questions or comments in the presentation, e-mail Greg Capra at Greg@mastertrader.com
Master Trader and You Building Your Financial Future Together!
All the best,
Chief Options Strategist