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Page 2 of 3 THE RULES FOR ENTERING Let’s take the 5M TF as our example. 1. Look at the lowest row which is the 5M TF. If the bar directly above the 5M bar is also blue you take the trade long. The best time to enter on ANY TF is just after you see an opposite colored bar on as many TF’s as possible. In this example it’s best to enter after you have seen some red bars on the lowest TF. If you saw red bars on all 4 TF’s just prior to entering long this makes for a better trade. The reason for this is you want to enter at the beginning of a new move or time cycle. If you entered on a blue/blue candles (5M/15M) just after seeing just one row of red candles on the 5M TF, it is possible and highly likely that you are not taking the beginning of a New 5M trend. Either way the entry is ok to take. I mention this only to enlighten you as to what makes for a better entry which will produce more PIPS since you will have gotten in early. 2. Now you have entered and you are on the 5M/15M cycle. Your job now is to sit tight and do nothing until you see your first red candle on the 5M TF. Once this has occurred you will be on alert status since the trade is starting to backfill. In other words some possible profit taking has occurred. But do nothing. Two things will happen at this point forward. 2a. You will see some more red 5M bars, then as the market recovers you will get into blue bars once again or 2b. You will see more red 5M bars and then the 15M row will display it’s first red bar. In the case of 2a you just continue watching and do nothing. In the case of 2b you wait for the close of the 15M bar and then switch the TF of the MT4 platform to the next higher one. In this case that would be the 15M. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and a blue bar on the 30M TF you are safe to continue the trade. Remember we are always talking about the bar directly on top of the other bar. 3. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and red bar on the 30M TF you exit immediately. Remember we always perform ALL functions with a close of bar. 4. So now assume we are clear to stay in on this trade. So are job is to monitor the 15M/30M TF. Again we stay in the trade as long as the 15M stays blue. If it turns red you perform the same function as before. Do nothing if the 15M is red and the 30M is blue. If the 15M and the 30M are both red get out immediately (at the close). 5. Now this can go on for a long time. I will be attaching a trade on the forum that started with the 5M TF and continued to the 1hr/4hr. I just looked at the trade I will be posting that follows this word doc and I would still be in. Lot’s of PIPS were made by staying in and not exiting until the rules tell you to do so.
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