Trading with 5m Force strategy, Day 15

Back to trading again. Today price is moving in a range below 30 pips just below the central daily pivot starting before the open of Tokyon session.

Figure 01: EUR/USD, 5m Chart.

Now let's see the trend in different tf.

Figure 02: EUR/USD, daily Chart.

Figure 03: EUR/USD, 1H Chart.

Figure 04: EUR/USD, 15m Chart.

Here, the current trend is bearish. Moreover the price is just below the daily pivot. So with a strong pivot above and a prevailing down trend, price is likely to go down.

When I came to monitor chart this morning I found, price is going towards upper TL and produced bounce off the upper TL & the price started to hesitate here. Then started to move downwards. I missed the trade by a candle. So I watched the move from the sideline.

Figure 05: EUR/USD, 5m Chart.

Price after moving down about 10 pips price started to move north from shorter term lower TL. After 3rd candle price started to move opposite direction where it started to make a long signal. It faked and again on 3rd candle price reversed.

Figure 06: EUR/USD, 5m Chart.

This time moving a decent distance price made a pinbar near the daily pivot line and reversed again.

Figure 07: EUR/USD, 5m Chart. Pinbar

Before the pinbar, price formed a hidden bearish signal. So a good sell opportunity here.


Figure 08: EUR/USD, 5m Chart. Hidden bearish divergence

I entered short position and collected only 4 pips where more than 12 pips could be collected here. I exited with panaic decision.
After this demoralizing trade, a bullish divergence came followed by a hammer at lower TL. So I entered a long entry with daily pivot at 15 + pips distance above.


Figure 09: EUR/USD, 5m Chart. Bullish divergence

But this trade moved against me and took away some of my pips. This was counter trend trade. I think I'll have to stop taking these trades. Sometimes avoiding good set up is not so easy. This is what I need to learn.

While going downwards, I broke the range bound price movement. I took the break out short trade immediately below the lower level of range with SL at above the upper end of range, that is above the daily pivot.


Figure 10: EUR/USD, 5m Chart.

Price was producing a bearish channel.


Figure 11: EUR/USD, 5m Chart.

At the end of this small bearish break out, a bullish hammer produced.


Figure12: EUR/USD, 5m Chart. Hammer

At this hammer formation other indicators also produced good buy signal and daily pivot is at a more safer distance giving the price enough space to move. But as it was the hour before a high impact news break (Spanish unemployment change) and also London open, I stayed out of this trade.


Figure 13: EUR/USD, 5m Chart.

It was a good clean move of the price. But I missed it probably for a valid reason. Now I'll monitor next 2 hour of opening London sesseion for any trade.

What I learned so far is, for trading a sound sleep is necessary. I was at work last night, so I had less sleep. Head is jammed. But I don't want to miss the price action as it's part of the learning curve. See you soon.

Figure 14: EURUSD 5m Chart. Bear channel

EUR/USD pair still in bear channel in 5m chart and price is now moving around a psychologic level 1.3000 which is lying in between daily pivot and DS1. Wait to get a good move prabably below towards DS1.

Another low impact news release was after the London open. But showed a marked response of about 20 pips movement downwards in 5 min. price made a double bottom with a hammer candle at 2nd part of double bottom. So preice was expected to go upwards.

Figure 15: EURUSD 5m Chart. Double bottom

At this price action, I had to leave my laptop to attend a patient. When I came back I found -

Figure 16: EURUSD 5m Chart.

More than 22 good pips without any trouble as there were no significant s/r near except TLs. I'm still facing dificulty in managing my profession with fx trading. I tried some auto trading EA but with no significant result.

Upward movement of price from the double bottom broke the upper TL. Price again started to fall but this time pre-existing upper TL became support and a dragon-fly doji is formed.


Figure 17: EURUSD, 5m Chart, Dragonfly-doji

During the price action price also formed higher low and stoch froming lower low... that is hidden bullish divergence. Dragon-fly doji strengthened the bullish signal along with stoch.