This is one of the strategies that is designed sometimes it is referred to as the SMAangle indicator strategy.
Just as the name suggests, it is used mainly on the 5 minute timeframe. It is best suited to trade the EUR/USD, GBP/USD and the EUR/JPY currency pairs.
The 5 Minute Intraday trading system is built on the following indicators:
- EMA 1O
- EMA 21
- SMA 50
- SMAangle window
- SMAangle indicator
Fig.1. the 5 Minute Intraday indicators that come with the template.
However you should put the following horizontal lines on the SMAangle indicator:
- Two horizontal lines at 0.1 and -0.1 when trading any of the currencies.
- Horizontal lines at 0.15 and -0.15 when trading the EURJPY.
- Two horizontal lines at 0.4 and -0.4 when trading any of the currencies.
Then you should open the ADX indicator on a different chart.this should not disturb you as when you add it, it will automatically open in a new chart. Then open the Isma 3 indicator so that they both can work together.
The smoothed moving average (SMA) 50 is the main indicator in this 5 Minute Intraday system. Therefore you have to understand how it works and understand how to use it.
The simple moving average (SMA) is calculated by adding the closing price of the currency pairs for a number of time periods that are set in the indicator and then dividing this total by the number of time periods.
In other words, this is the average price over a certain period of time. You should keep in mind that there is an equal weighting that is given to each price level.
Generally, when you hear the term “moving average”, it is in reference to a simple moving average. This can be important, especially when comparing to an exponential moving average (EMA).
The regions between the 0.1 and -0.1 lines that you drew on the SMAangle indicator is a NO trade zone. Therefore when the indicator is in this region no trade should be done.
As the market prices pulls back from the EMA 10 to EMA 21 there is a zone of war that is formed between the EMA 10 and EMA 21.It is actually the zone at which the market fights to decide which side it will head to.
There are different ways by which the market prices may tend to ull back to the war zone.the market may retrace using smooth curve of candlestick formation. Also it may pull back in a wave like manner where it swings to highs and lows as it retraces. And it may also form ascending or descending triangles between the support and resistance levels.
When to trade
Trading is done after the second candle enters the war zone. You should avoid trading when the first candle enters and be patient to wait for the next candle to close instead the war zone. The trend line must also be above the 25 level. Target a small profit; don’t exaggerate.
A buy order is placed when the blue line of the ADX indicator moves above the red line and the Isma line has crossed the red line heading between the blue and the red line.
A sell order is placed when the red line of the ADX indicator moves above the blue line and the Isma line has crossed the red line heading between the blue and the red line. Target a small profit; don’t exaggerate.
Fig.2. 5 Minute Intraday Opening buy and sell positions
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