cathryn-lavery-67851The 5 minute bar

Already experienced with the 5 minute bar? Skip to the end for your practise.

Never heard of the 5 minute bar? Then read on.

OK for this exercise you need to open up your IG account at 7:45 am ready to trade
the FTSE at 8:05am.

If you have been following us for some time you will know about this but here is the exercise.
At 7:45 am note yesterdays close. Note if it was a down or an up day. At 8 am watch the first
5 minute bar form.
Note is it continuing the trend from yesterday, closing the gap, going away from the trend?
Once the bar has formed note the length of the bar and direction.
Now its 8:05 am you need to find the low of the bar plus 2.5 pts and the high of the
bar plus 2.5 pts.
That is your entry for this 5 minute bar system. It’s called a break of the bar. Your target?
The length of the bar + 5 pts.
Your stop? Set it at the other end of the bar from where you are entering and add 2.5 pts.

 

Make Money

Now if you want to do this every morning and make money here is
the very first thing you have to do.

ONLY TRADE this on MONDAYS and TUESDAYS and on Wednesdays, Thursdays and Fridays
you practice until you can do these numbers in your head. DON’T get tempted to trade when
you see one of these come up on another day.

Let me repeat that, ONLY TRADE THIS on Mondays and Tuesdays.

Why does it only work on Mondays and Tuesdays do you ask? Well actually it can work
at any time BUT on these days the retail traders, after reading the “My Shares Weekly”
over the weekend, come in and buy and sell the latest hot tips.
This creates volatility and volatility is our friend for this strategy.

If you are a beginner trader this is a great place to start your journey. We trade this exact system
here at Magnetic Trading just with more filter. Filters? Filters are things we apply to the trade
to make it more profitable. For example, your first filter is do this at 8 am. Your second filter is
only Mondays and Tuesdays. Technically your very first filter is to trade the FTSE. You
spotted that at the start of the article?
Traders develop filters over time. You will develop your own if you follow this for long enough.

We will shortly be releasing a new course specifically for beginners about this method with
all the filters and an introduction to trading and trading psychology.

One last thing if you are really new so you don’t lose your shirt. Your STOP. Also known as the
STOP LOSS. Don’t forget place it at the other end of the bar plus 2.5 pts.
That way if your trade goes the wrong way you will get stopped out and live to trade another day.

OK putting this all together? the chart and your levels.
5 minute bar

I have taken this from last Tuesday 16th May.
Lets go over this, the low of the bar was 7451.4 so adding 2.5 pts means if the
bar breaks down then our entry would be 7449.

The high of the bar is 7464.5 so adding our 2.5 pts means the entry is 7467.
The length of the bar is 13pts. Our target is going to be 18 pts which is the
difference between your entry and your stop. Another easy way to calculate
is the length of the bar plus 5 pts.
Stop is going to be at the opposite end of the bar to entry plus 2.5pts or
another way of saying it was the other entry point. So in this instance my
entry point was 7469 and my other possible entry was 7449 so that
becomes my stop when I enter at 7469.

You are going to have read this over and over again and look at charts.
But eventually this will trip off the tongue and you will be able to trade this
with your coffee in the other hand.

If you want to be the first to know when we release the course enter
your details below.

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