This is a question I received from a new trader who has been learning about how I trade. It’s an interesting question – especially during these times where the lack of a bullish or bearish Directional bias on many majors – is increasingly driving me personally to the shorter-term, intaday time frames.
I think it posed an interesting scenario for trade entry and I’m not opposed to it – it simply is another way to filter entries with a very short-term trade set up.
I can think a recent example of how this may work from this morning’s GBP/USD. Let me add – because I think it adds a nice footnote to this whole update – I was short the 60-minute based upon all the factors I list the videos EXCEPT for the five-minute Between the Greens “filter” so I took a small loss as prices rallied higher through the “00”.
So I recorded a short video series walking you though how this would work:
Let me know what you think and if you want me to do further articles on this idea of the five-minute Between the Greens strategy as the first step to a trade.
The rhythm of the trading day centers around the financial center opens, overlaps, closes, and economic calendar. This pattern however is to a large degree quite predictable. Take a look at the Movement Per Hour for the GBP/USD. Here you can see how the volatility increases and decreases each day and when. The graph is broken down into 24 one-hour segments and is shown in Eastern Standard Time.