m1 Scalping WITH m5 Guppy Revised Rainbow

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liq_rzl

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i get this trading system from forex factory
let's discuss about it..:)

want to share a setup im using now which is pretty similar, but more visual, and should give a trader more potential trades/scalps. In my humble opinion for me this setup is more useful for Trading the m1 safely along with m5 compared with the Original if it was to be traded on the m1.

+++ Basic Rules And Guidelines +++
Basics here are that m1 is used for entry, and m5 Trend Direction is our base for which way to trade in the m1. Trend Direction on m5 will be determined by the Guppy Rainbow. The guppy trend orientation is as follows:

Longs: Purple guppy at TOP of rainbow, yellow guppy at bottom.
Shorts: Purple guppy at BOTTOM of rainbow, yellow guppy at top.


Once a long guppy rainbow is setup in the m5, we can begin to look into the m1 for long entries which I will explain, and when Short guppy rainbow is setup in m5 we can begin to look in m1 for entries to go short. Simple?

Charts are comprised of 5 different elements which I will explain >>>

1) Guppy Rainbow for our Main Trend Direction - m1 entries should only be taken with prevailing m5 guppy direction.
2) RSI arrows set to period 8, matches my method perfectly and works well to help me spot a retracement and get ready for an entry point, these can be seen on my chart over the guppy with red/green arrows
3) Trend Envelopes 2.0 - These are on my guppy which can be seen colored by orange/blue lines with blue/orange balls to show trend direction, VERY useful with this method and will help us to know when retracement is over and to get ready for our entry into the trend. Standard setting has been tested by me and seems to be the all around best so no need to change it at this point.
4) Mtf Laguerre - Crucial part of the method and will be used to take entries in m2 chart only. This does NOT repaint, it is simply a higher period than normal to try and emulate a longer term trend, but is still responsive whilst not being slow either. More on using this shortly.
5) RSI MTF Bars - RSI bars at the bottom of my screenshot run on periods of 42, 84, 126 and 252 rsi. These emulate a longer term trend to make our m1 entries safe, Again, it is CRUCIAL to enter ONLY when all are the same colorso it filters out chop and helps us to trade only when price is 'moving'. These settings do NOT need to be changed currently and work by giving buy/sell signals when these 4 RSI periods cross above/below the 50 level.
=================================== ====================
Click image for larger version Name: eu_m1_guppy.gif Views: 41 Size: 48.5 KB ID: 395693
>>> Longs <<<
1) m5 Trend Direction needs to be setup long.
2) Higher probability when m1 Guppy is established in same direction as m5, Purple at the bottom for longs, yellow at the top remember!
3) TrendEnvelopes 2.0 signal with blue ball need to be given to get ready for entry point. RSI 8 Arrow is a useful confirmation if this is signalling long also, if both RSI 8 arrow and TrendEnvelopes Blue Ball are signalling on the SAME m1 candle, this tends to give a higher probability for the trade.
4) Laguerre NEEDS to be coming UP from UNDER the 0.15 level, if you look closely on your Laguerre indi it will be displayed by a small GREEN dot. If this is signalling, but RSI bars at bottom aren't lined up yet, its safer to wait till they're ready.
5) Safer entries seem to be when RSI bars are ALL lined up Blue to signal that long entries are now safer. If you trade only when these RSI bars are all the correct color this will help you avoid getting into a weak or bad move according to what ive seen.

>>> Shorts <<<
1) m5 Guppy Rainbow needs to be setup Short. Purple at the TOP, yellow at the bottom.
2) If m1 guppy is oriented in the same direction as the m5 rainbow this will allow for more safer entries.
3) TrendEnvelopes Signal needs to be given with an Orange ball forming, RSI arrow can be used for extra confirmation but isn't necessary but increases probability when RSI arrow is given on the same signal candle as the TrendEnvelopes.
4) Laguerre needs to have dropped from the 0.85 level from ABOVE coming out and falling, this will be signalled by a small RED dot in the 0.85 area on this indy. If Laguerre has given signal to short but RSI bars at the bottom aren't quite ready yet, wait a candle or 2 and let the RSI bars align up properly. If the move is good things WILL line up on the same candle or 1-2 candles after the Laguerre signal is given.
5) For higher probability and stronger entries its important to make sure ALL RSI bars are red indicating a safe short.

=================================== ====================

I will post more screenshots in the next few posts with some more explanations of retracements into the guppy and how to get ready for taking an entry with the Guppy. Files and my template are posted below in a zip file, settings and indicators seem to work together so I hope that changes may not be made or people clutter things with additional indicators as that may take focus away from the Guppy and we have what we need for entering safely on the m1 here to follow the longer m5 Trend.

I hope this is of some help to Trend Followers using the Original m5 and will shed some light on how to safely look for more entries with smaller stops.

Credits & Inspirations >>
TheWicker for the guppy and original concept, CelticHeart for sharing his RSI periods in another thread kindly, Eati for the RSI bars indicator, My friend pilatus for support and help with this method from the beginning and also Pardy who has inspired my trading journey these past 2 years. To the gentleman who shared this Laguerre indicator on this forum please message me your name if you see this and I will add your name to credit your work. Thanks!
 
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liq_rzl

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i don't know how attach file..but u can get t indi from that link
 

gorgeusfx

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awek mano plak ni newbie :D
eden nk bekenalan leh x nmpk pink jer xdo renbow pun:D
 
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