“Should all trades begin with a five-minute trend and a Between the Greens entry?”

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.

Another aspect of intraday or “day” trading in forex is making sure that scheduled and UNscheduled economic events are closely watched because they increase the volatility of price action.

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.

7-12-2011 8-22-01 AM.jpg

PowerStats Movement Per Hour provided by Autochartist.

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  • brygivrob

    Thanks, I found that interesting and helpful. I did think the 60 min. chart looked too oversold to sell, tho’.

    • Raghee Horner

      Thanks for your comment brygivrov. I am really just experimenting with this idea and think it may be a filter, especially when there is a valid Between the Greens entry that conflicts with an entry on a longer term set up.

  • Andrew

    Forex 2011 has started peaking, and this Blog post is going to help me invest my first grand in it. Thanks a ton Ragee!