The 5-minute trading strategy is ideal for traders seeking fast-paced market opportunities. Here’s a step-by-step breakdown to maximize your gains:
1. Start with Daily Analysis: Identify the previous day’s high and low to set key levels.
2. Initial Stop-Loss: Place your stop 1/8 above the previous day’s high for bearish trades.
3. Monitor 15-Minute Charts: Look for confirmation signals like a bearish harami pattern.
4. Adjust Your Stop: After the trade moves in your favor, shift the stop-loss to minor resistance for protection.
5. Follow the Trend: Use the 5-minute chart to track momentum and identify new resistance levels.
By 10:30, review the market for potential base resistance and new entry opportunities. This strategy works well with discipline and proper risk management.
