When I was an active stock and e-mini S&P trader I used to set up my trades on five minute chart...I'm still an active e-mini S&P trader but I don't find myself using the short term time frames like I used to...so I had to ask myself why the heck aren't I!?!?

I originally wanted to call this update "The EASIEST Short Term, Intraday Trading, Charting Set Up EVER". But I thought that was a little too obnoxious....

Short term time frames are an integral part of active intraday traders view as well as a great way to new traders to enter the market will less risk than -- for example -- a 60 or 240 minute chart. The longer the time frame, the larger to risk/reward ratio. Well, ofcourse, everyone loves more potential profit but not everyone can AFFORD the higher risk that usually comes with it!

I've shared this approach in my live presentations on a limited basis and thought I'd lay the groundwork for what I do on short term time frames to capture corrections in a trending market. Much of it should already be very familiar because it's a variation of my swing trading approach and relies on the Wave for direction confirmation. So the first thing you're going to need to do is set up a five minute chart with the 34ema on the high, low, and close.

The angle of the Wave on this chart shows that the 5 minute EUR/USD is in an uptrend, which means for the strategy I will be sharing here, the entries will be buys on pullbacks. But the use of the Wave in this strategy mainly for trend analysis and risk management.

This chart with the Wave is THE MOST IMPORTANT part of the set up because you only want to be entering pullbacks during the mark up or mark down cycle. The lookback on the five minute chart is one day but you'll find that just you'll likely fit just less than that (probably 3/4 of the day) comfortably on your screen if your charts are small like mine are. The size I use here (below) is pretty much actual size on my monitors. You're looking for the 34ema Wave to be heading up between 12 to 2 o'clock or between 4 and 6 o'clock. Any sideways market cycle means leave this set up alone!

By the way, you'll notice I have the GRaB 2.0 plug-in running on my charts and you can get that free from my personal blog at RagheeHorner.com. You don't need the GRaB plug-in to set up the 34ema on the high, the low, and the close but I did want to share the plug in with you regardless. Personally, I like the visual the GRaB offers me. GRaB simply stands for Green, Red, and Blue.

You're going to need a second five minute chart, which we will set up the entry moving averages on as well as the stop loss moving averages. Like most MAs I use, they too will be Fibo based. That'll be in part two.