C5 Trading System
Day Trading and Scalping Strategies
Time Frame: 5m,
Pairs:all
Indicators
•Pivots Daily #1 & #2
•Pivots Weekly #1 & #2
•Pivots Monthly #1 & #2
•EMA 34 Blue
•EMA 55 Red
•Stochastic #1: 8,0,3
•Stochastic #2: 13,0,3 (in stochastic #1 window)
•MACD Lines: 34, 89, 34
•CCI: 50
Break down of what each indicator is used for…
•Pivots – always used as support and resistance and for placing stops and take profit orders
•EMA 34 & 55 – trend indicator and retracement entry signal
•Stochastics – used to help call tops and bottoms and pinpoint entries
•MACD Lines – trend and trade direction indicator
•CCI – trade direction confirmation (optional indicator but very useful)
The rules for entry
Long Entries
•Price must pull above 34 & 55 EMAs in an obvious manner and be easily recognizable.
•The blue 34 EMA must be above the red 55 EMA
•MACD must be in buy mode and preferably above the 0 line (above 0 line is optional) •Stochastic, at least one of them, should be recently over sold at the 20 level and be headed up •Is best for CCI to be above 50 but not mandatory. This is used as an early warning to trend change.
Here are some examples of good buy set ups.
Short Entries
•Price must pull below 34 & 55 EMAs in an obvious manner and be easily recognizable.
•The blue 34 EMA must be below the red 55 EMA
•MACD must be in sell mode and preferably below the 0 line (below 0 line is optional) •Stochastic, at least one of them, should be recently over bought at the 80 level and be headed down •Is best for CCI to be below 50 but not mandatory. This is used as an early warning to trend change.
Here are some examples of good sell set ups.
Most of these examples here are absolutely perfect set ups. To be honest, the majority of the setups are not this perfect. Sometimes the stochastic won’t match at the time of entry or the CCI may be very near the 50 and require a judgment call on trade entry. For the most part, when price is obviously on one side of the EMAs and the MACD isgiving an obvious trade direction, this is enough for an entry.
Stop Loss
Well, that really depends on which broker you are using. I personally use a mental stop due to rogue market spikes that happen at times that have whipped me out in the past. I also do not trust market makers at all. My rule of thumb is to place a stop at the last obvious swing point or 55 pips. If I have to go away from my pc for a short time and if I’m not in profit on a trade I’ll use a 55 pip stop.
I almost never use a stop loss of more than 55, unless I’m in a GBPJPY trade. I have seen this pair run against me nearly 100 pips and come right back into profit inside of 3-5 minutes. That pair is crazy at times…but the profits are definitely worth it. .
For this strategy, if the trade is not going your way, the indicators usually will turn and give you a full reversal signal before your stop is hit. Most of the losses with this strategy are between 30-50 pips with the winners being much larger and more often
Here’s a screen shot of an example of where I would put a stop loss
