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This is a 5-min chart of the EUR/USD using the CMC Markets platform, and offers a glimpse of how I trade with 5-min charts. Price action is useful and universally applicable because it can work on most counters and most timeframes, even if the products do not have volume.
This was quite a decent trading day, with 1 scratch trade and 3 winning trades. I started trading at 3pm, which is the time when European markets turn active, but had to end the day early (closed out everything by 6pm) because of dinner plans.
Today was pretty much of a ranging day, which was why I employed a trend channel strategy, using price action to pinpoint the precise entry and exit points. The day started off with a bull flag which failed, forming the start of the channel and providing the setup for the next entry. After that, it was pretty much trading within the range.
One thing to note is that although the bull flag failed, its projected target was hit almost to the precise tick later in the day, showing that classical chart patterns can be traded in different ways, as part of a more advanced price action setup.
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