The Triple Screen Pattern
The M5 in Momentum , M1 Pulling back, S12 does what?
The Market is an Epic Display of Fractal Geometric Patterns. Some of the patterns may be considered as random yet others appear frequently with a degree of predictability.
A pattern on X time frame will almost always have a relative pattern on a certain another time frame.
We all love and adore and profit handsomely from one of these pattern we love to call The Setup One.
For me, when I find a setup 1 pattern on say, M1, I want to see that the M5 chart is showing a) a clear clean price action that is b) out of a consolidation or a trading range. In most cases an open gator and price out of the m5 box means we are in business.
After taking thousands of setup 1 trades I have found the relevant patterns of the other time frames. I learned these patterns while day trading the DAX on the m1/m5 time frame. I must highlight the significance of the m5/m1 chart layout. You must have the m5 chart displayed at all times trading the m1 chart.
- When the M5 charts are printing all green or all red consecutive candles,
- Price is out of a consolidation or a trading range
- The Gator on M5 is open clearly
- There is nothing to the left. (No S/R i..e box levels)
While that is happening the M5 consecutive candles do not allow for an entry. But if you look at the m1, you will see some micro pullbacks.
Within the two M5 candles the m1 candles are pulling back 2-3 candles. It would then resume in the direction of the current momentum. It should then pull back one more time. When that happens you want to take trades within the 1st or 2nd pullback. 3rd is a bit risky but for e experienced traders still an opportunity to scalp.
During the above formations and patterns if you were to drop to the 5xLTF in this case the 12 Seconds Chart you will see something interesting.
The S12 will be Setting up as Setup 1 entry during each of the M1 pullbacks.
You don't want just the m1 chart pulling back ...
You want the m5 chart to be OUT of the boxed region... out of the range...
Upon a little inspection, you will discover that whenever such is the case,
You will find M5 candles to be 1) out of the box and 2) nothing to the left.
Meanwhile, the m1 chart will have a series of pullbacks, short 2-3 pullbacks creating small boxes ...
and within those pullbacks of m1, you will find setup 1's on S12
Likewise, within a pullback pattern on the M5 chart, you might find M1 Setup 1 Patterns.
It is within an M5 pullbacks like the one we see on m1 chart above that the m1 chart will be setting up as Setup One Pattern.
When that is happening S12 won't be of use to you. It will be showing a sideways rangebound market on that time frame and zoom level.
likewise when the m1 is moving strong with consecutive red candles and price out of the box... the S12 will create small 2-3 candle pullbacks
But that is for markets taht move like DAX.. the ones with 150 and above range...
What about FX markets? Well the FX Pairs don't usually have this much volatility except the 10-15 minutes of strong news events...
Due to this peculiar change... the time frame combination works differently... the lower the time frame you go the thinner the volume when it comes to Forex.
It goes like this ....
H4 consecutive Candes
H1 Pullabck
(not m15) but in most cases instead
M5 setup 1...
This is why if i simply focus on H1 Seeds or 2-3 candle pullabck... I know I will find great setup 1's on M5... hope this makes sense to you all
