Thread: Simple 5 Min Gold (XAUUSD) Strategy

Hi, first of all I need excuse for my bad English. .

I want to talk about a very straightforward and profitable egy. This egy is based on Trendlines and Price Action. There are many ways to utilize this egy from starting then add filters, additional methods and ideas, but I will start. Everybody is welcome get greater outcomes and to polish this egy.

This egy can make use of almost any major currency pair but I want to start with Gold (XAUUSD) due to some reasons. Gold moves 900 to 1500 pips per day. No need to run for many currency pairs. If you do analysis for 4 major currency pairs then you will need lot of time and you will get several pips. If select only 1 Gold pair then You can make over 200 pips in single day.

Alright let's start....

The way to draw an ideal trendlines?

Drawing trendlines can be very subjective and traders will draw them differently over the chart. Please go to this thread for drawing trendlines that are ideal.
Https://www.nigeriaforextrading.com/...1-markets.html

I've attached customized MACD indior to get egy. This isn't mine. I downloaded from forum and thanks to developer of the indior.
Preferences for 5 Min chart ( 1,13,1 ) Notice: it is also possible to utilize Default settings. It is upto you which work for you.


Draw trendline connecting highs and lows with the help of MACD.

Now wait for price to break. See attach picture




Entrance: Once a big candle break the trendline. Wait for the candle to shut and enter.

Stop reduction: Criteria for stopp loss is it shouldn't be less than 10 pips. It has to be within the trendline. Stop loss is based on dimensions of breakout candle. If the size of this candle is big stoploss could be more than 10 or 12 pips, sometimes 15 or 20 pips.

Exit: Different principles for Exit:
1. It's possible to adjust TP for 10 pips for each and every transaction
2. Establish TP equal to Stop Reduction
3. Establish Tp to previous high high or reduced
4. Establish TP to next support or resistance
5. Best Exit Rule
you are able to make using your money control and Exit Points. For example if your SL in 15 pips and TP is also on 15 pips. Once Price reaches target then you should shut half Lot and then move your SL. Now you are free of fear. It is possible to see many times Gold moves upto 50 to 100 pips after it breaks down the trendline. It depends how you manage it.




Notice: This is actually the first step for this egy to understand and practice. Once you will understand and comfy then we'll proceed to make it longer progress.

I favor this egy on Gold since Gold move 1000 to 1500 pips in 1 day. Therefore, if you take only Gold and practice. Once you can analyse Gold moves you will have the ability to make over 200 pips daily using this egy. There are lots of benefits for Gold pair .Later I could discuss.

Please do not use it on live accounts. Practice it on Demo and back evaluation. Once you will learn then discuss your experience to here. So together progress utilizing a few additional filters and indiors. Time to time I will update this first post to understand.

UPDATE

Please visit my New thread about Divergence Strategy on same 5 Min Gold Chart here https://www.nigeriaforextrading.com/...end-2-1-a.html

Trendline and Divergence Both egies Are Extremely simple and profitable. Please practice my equally gies and I will combine both egies to make a very powerful complete system. I want people understand step by step.

Please update me on your own practice and ask me questions.

Thank You

https://www.nigeriaforextrading.com/...1162849414.mq4

Hey objective trendlines seems terrific. I'm not really sure I know how you are using the MACD to draw them though... could you explain that a little more?

Originally Posted by ;

Hey goal trendlines seems terrific. I am not really sure I understand how you're using the MACD to draw them however... can you clarify that a bit more?

Please see that thread, this will help you to draw a trendline https://www.nigeriaforextrading.com/...x-trading.html

Originally Posted by ;

quote Please visit that thread, this can allow you to draw a trendline https://www.nigeriaforextrading.com/...n/89-walk.html

Would you have drawn your trendline like I did in the attached picture?

EDIT: I'm not trying to be difficult, just trying to understand.

Originally Posted by ;

quote Would you've drawn your trendline just like I did at the attached picture? EDIT: I'm not trying to be hard, just trying to understand.

Hello jmflukeiii

Excellent Observance, I really love you. Allow me to clarify.

It's possible to draw this trendline but chances are less to find profit although you are receiving 7 pips there. But I won't draw this trendline because of these reasons

1. Higher lower or high high must be clear

2. Look at the candle. . Those are very very small

3. There are three equivalent top candles that indies something beforehand like resistant or some other amount ( We won't exchange if we see an immediate resistance or support after breakout.

4. Market has no volatility so chances are less to get more pips.

5. This Customized MACD indior tells lot of stuff, ( I will talk later )

6. The trendline should break. These are small candles. You may get upto five pips or break .

Hope you understand some points... Soon I will discuss more things.

Thank you for the detailed response - that I understand what you're saying.

I had been thinking, to make it a truly mechanical procedure, which in order to get a trendline to become valid, you could could wait for 4 MACD extremes, two over the 0 line and two under the 0 line. That way, two macd peaks over the line wouldn't cause a bogus trendline break (at least at the example we're discussing) because you'd still need the 2nd summit beneath the line to be made to be certain you have the proper two highs for the top trendline. Perhaps this is cherry picking from only this one instance though -


Anyway, thanks again for the reply and the ideas!

Originally Posted by ;

Thank you for the detailed response - I know what you are saying. I was thinking, to make it a really mechanical procedure, that in order to get a trendline to be legitimate, you could wait for 4 MACD extremes,

Thank you for your idea. You are getting the point which I wished to describe. For drawing the trendline the principle is exact the same as you described. Thats link for ideas and explanations.

I shoot this snap shot. You need to connect MACD high above the zero line and lower lows with price higher high and lower highs then you are going to come across a trendline.

Originally Posted by ;

Thanks for the detailed response - I know what you're saying.

This is not a valid Support Trendline in your chart.


Look at the blue ring, MACD Low is very small. . It should be clear.

Originally Posted by ;

quote This isn't a valid Support Trendline on your chart. picture Look at the blue ring, MACD Low is very small. . It should be clear.

Technically speaking, I think that it really is, but I understand the distinction you are making - the MACD needs to make a very clear and definable low/high. Maybe you are able to draw on a line on the MACD, a one, indiing far the MACD has to go in order to be considered valid?

Originally Posted by ;

quote Technically speaking, I think that it is, but I know the distinction you are creating -

Yes if you read the thread ( https://www.nigeriaforextrading.com/...ok-review.html) then you are going to learn fast how to draw ideal terndline.