Entry Timing with near Accurate Forex Signals

How do you time your entries in other words what is your method for entering a trade?

The following describes how to use accurate Forex signals to time trade entries using a lower time frame. A lower time frame when used correctly, provides a more timely point of entry.

For the purpose of discussion, let’s say your main trading time frame is 10 minutes (it could be anything you want it to be, just substitute it accordingly with relevant time frames)

Assuming you have your focus on the major trend, let’s say in this case it’s a downtrend.

10 Minute Forex Chart

You look at your trading time frame (10 minutes) for a signal to enter a trade, lets look at the Forex chart of GBP/USD above.

You decide to trade “short” at 12 noon, you suspect the price will continue in the direction of the trend (south)… you also feel you need further assurance, so you change over to the 5 minutes chart shown below, and look at what the price is doing here at around 12 noon well, what do you see? Price has pierced the upper Bollinger band confirming it is overbought and correction is imminent (reversal). "Short" when the SAR signals (red dots), or when the lower moving averages cross in the correct order.

5 Minute Forex Chart

What has happened here is that the 5 minutes chart has confirmed that a "short" entry is reasonably safe to trade.

To explain this further lets look at another slightly different example on the same charts.

On the 10 minute chart at 9 am, the SAR indicates the possibility of a “short” trade, now lets get further assurance of this by taking a look at the 5 minute chart, notice the price at this point (on the 5 minute chart) is extremely overbought, with constricted Bollinger bands, in other words the 5 minute chart at 9 am is indicating a possible explosive move in the south direction raising the probability stakes to trade “short”. (SAR red dots)

Finally, please note that this set up and method of trading applies equally to all other traded instruments and not just Forex.

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