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SETUP DE 5 MINUTOS: O QUE CONFIRMA UMA ENTRADA? — Transcript

by Wall Street Invest · 2,611 words · 442 segments · language en · Watch on YouTube

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  1. 0:00And for today's tip, we have a lot of
  2. 0:02new followers on the channel and many
  3. 0:04beginner traders.
  4. 0:05And a lot of people are still asking how
  5. 0:07the moving average crossover setup works
  6. 0:09, right?
  7. 0:10I've been using the 5-minute chart more
  8. 0:12, but when I trade, I trade on the 2-
  9. 0:14minute. Why? Why do I use the 5-minute
  10. 0:16more during the live stream? Because the
  11. 0:18vast majority of people trade on the 5-
  12. 0:20minute. But I like to trade on a smaller
  13. 0:22timeframe. So I like to trade on the 2-
  14. 0:24minute chart, where I feel more
  15. 0:25comfortable trading this strategy.
  16. 0:28But look, there's no right or wrong;
  17. 0:29it’s about which timeframe works best
  18. 0:31for you. And during the live stream,
  19. 0:33many people asked how it works, what the
  20. 0:35strategy is, what the configuration is,
  21. 0:37right? And there was a guy named
  22. 0:39Guilherme who asked in the middle, right
  23. 0:41? "Hey, Maçuda, explain to me how the
  24. 0:43crossover setup works?"
  25. 0:45But it was right during that drop at
  26. 0:4811:40 AM and I said, "Guilherme, man,
  27. 0:50let's focus on the price action right
  28. 0:52now, okay?"
  29. 0:53And I ended up leaving him without an
  30. 0:55answer. I was thinking about that during
  31. 0:57lunch. I said, "Man, I have to record
  32. 0:59this."
  33. 1:00So today, in the tip, in honor of
  34. 1:02Guilherme and everyone who asked about
  35. 1:04moving average crossovers during the
  36. 1:06live, I’ll present my crossover setup
  37. 1:08that I trade on the 2-minute chart.
  38. 1:11Let's go, then. How does my moving
  39. 1:13average crossover setup work on the 2-
  40. 1:15minute chart, okay?
  41. 1:17When will I use this strategy? It's a
  42. 1:19long trend reversal strategy. Let me
  43. 1:21explain this, okay?
  44. 1:23So the crossover setup, Guilherme, and
  45. 1:26everyone here, is an opportunity
  46. 1:27strategy.
  47. 1:29What does that mean?
  48. 1:32It only works starting from an initial
  49. 1:33long move, whether it's a strong uptrend
  50. 1:36or a strong downtrend.
  51. 1:38In the case of the mini index, it needs
  52. 1:41to move 1,000, 1,600. The more it moves
  53. 1:43, the better. So, at a minimum, it needs
  54. 1:45to move about 1,300, 1,500. But ideally
  55. 1:48, it should move 2,000, 2,500 points.
  56. 1:50And since it's quite volatile these days
  57. 1:52, it’s moving 3,000, 4,000 points, okay
  58. 1:54?
  59. 1:56So, the more it goes up or down, the
  60. 1:58better, because it's a long trend
  61. 1:59reversal strategy.
  62. 2:03So, without a large initial move up or
  63. 2:05down, you can't enter the crossover.
  64. 2:07For example, if the price only goes up
  65. 2:09600 points and starts to fall, can you
  66. 2:12enter on that crossover? You can't enter
  67. 2:14, okay?
  68. 2:15So, it's a long trend reversal strategy
  69. 2:18.
  70. 2:19A long move must happen, whether bullish
  71. 2:21or bearish, so that upon its reversal—
  72. 2:23especially when it hits that second or
  73. 2:25third VAP band, which are exhaustion
  74. 2:27zones—that's when it's best to trade the
  75. 2:29return, as the price tends to go back to
  76. 2:31the VAP.
  77. 2:33And the best time to trade this strategy
  78. 2:35is from 10:30 AM to noon, which is when
  79. 2:38reversals occur, especially at 11:00 AM
  80. 2:40.
  81. 2:42That’s why my live stream is always at
  82. 2:4311:00 AM, because that's when the setups
  83. 2:45I like to trade happen.
  84. 2:47Okay?
  85. 2:49Well, the trigger is the famous moving
  86. 2:51average crossover, right? I will work
  87. 2:53with two moving averages, okay? Let's go
  88. 2:55straight to it here. A five-period
  89. 2:57average and a 21-period one.
  90. 2:59This configuration only works for the 2
  91. 3:01-minute chart, okay?
  92. 3:03You can trade both the index and the
  93. 3:05dollar. So, on the 2-minute, you will
  94. 3:07use the 5/21 crossover.
  95. 3:10Both averages are exponential at the
  96. 3:12close, right?
  97. 3:14If it's on the 5-minute, use that other
  98. 3:163/9 crossover, okay? But on the 2-
  99. 3:18minute, use the 5/21 crossover.
  100. 3:21Each timeframe has a crossover that
  101. 3:23works best.
  102. 3:24In the case of the mini index or dollar
  103. 3:26on the 2-minute, it's the 5/21 crossover
  104. 3:29, right? So, this blue line is the 5-
  105. 3:31period average and this red line is the
  106. 3:3321-period average.
  107. 3:36Whenever I put two moving averages on
  108. 3:37the chart, the smaller average is always
  109. 3:39the most important. For example, with
  110. 3:425/21, the 5 is smaller, so it's the most
  111. 3:44important. On the 5-minute chart with 3
  112. 3:47and 9, the 3 is smaller, so it's the
  113. 3:49most important, okay? So, the smaller
  114. 3:51average will always be the most
  115. 3:53important, alright?
  116. 3:54When I put two averages on the chart,
  117. 3:56they give me two pieces of information.
  118. 3:59First, the trend; for example, the
  119. 4:01smaller 5-period average in blue is in
  120. 4:03charge.
  121. 4:04If the 5-period average is above the 21
  122. 4:06-period red average, it's an uptrend.
  123. 4:10If the smaller 5-period blue average is
  124. 4:12below the larger 21-period red average,
  125. 4:14I'm in a downtrend.
  126. 4:17So, the position of the smaller average
  127. 4:18relative to the larger one shows the
  128. 4:20price trend.
  129. 4:235 above, uptrend.
  130. 4:255 below, downtrend.
  131. 4:27And the second important piece of
  132. 4:29information is that when the averages
  133. 4:31cross, it gives me the buy and sell
  134. 4:32trigger. So, once again, the smaller
  135. 4:34average is the one in charge. The
  136. 4:36smaller one is the five. If the five
  137. 4:38crosses above the larger moving average
  138. 4:40, 21, it's a buy crossover. If the five
  139. 4:43crosses below, it's a sell crossover.
  140. 4:46Simple as that. It's not that simple,
  141. 4:48guys. There are several rules for
  142. 4:50trading crossovers, okay?
  143. 4:52There are older lessons where I show six
  144. 4:54, four tips for you to filter out wrong
  145. 4:56crossovers. Yes, it gives many false
  146. 4:58entries, especially in a sideways market
  147. 5:00. So, the main thing you have to know is
  148. 5:03: you don't trade crossovers in a
  149. 5:04sideways market, remember?
  150. 5:08It's an opportunity strategy, it only
  151. 5:10works after an initial long move,
  152. 5:12whether bullish or bearish, and then
  153. 5:14catching its long trend reversal, okay?
  154. 5:18And look, let me clear the chart here.
  155. 5:20Now it's better, look. Let me pull this
  156. 5:23here, okay? So, look.
  157. 5:25When the averages cross, when, oops, let
  158. 5:27me do this again, look. Let me go back
  159. 5:30here, look.
  160. 5:31When the averages cross, I need an
  161. 5:33ignition candle, which would be this
  162. 5:35candle here.
  163. 5:37So, when the averages cross, I need an
  164. 5:39ignition candle, a candle with a
  165. 5:41standard body size. Yes, candles have a
  166. 5:44standard size. On a 2-minute chart, it
  167. 5:46would be a 120 to 150-point candle, okay
  168. 5:49? Where the body is predominant, it can
  169. 5:51have small wicks on top and bottom. So,
  170. 5:53upon crossing, this candle will be my
  171. 5:55ignition candle. Let me delete these
  172. 5:58lines here. Now it's better. Okay, let's
  173. 6:00go. So, this candle here, right at the
  174. 6:02crossover that triggered the ignition,
  175. 6:04will be my ignition candle. So, where do
  176. 6:06I enter long?
  177. 6:08When it breaks the high of this ignition
  178. 6:09candle.
  179. 6:12So, a little bit above the high, I will
  180. 6:14enter long only here on the next candle
  181. 6:16, okay?
  182. 6:18And where do I place my technical stop
  183. 6:20loss?
  184. 6:21Below the low, right, of the ignition
  185. 6:23candle. A little bit below. Here I have
  186. 6:26two conditions: below the ignition
  187. 6:28candle and below the red average.
  188. 6:30Whichever is further away is where you
  189. 6:31will place your stop.
  190. 6:33So the larger this ignition candle is,
  191. 6:35the more expensive your stop becomes as
  192. 6:37well. Be careful, okay? And where do I
  193. 6:40place my stop gain? At the next support
  194. 6:42or resistance that exists. In this case
  195. 6:44, since the price is below, at the next
  196. 6:46ceiling of the next resistance. For
  197. 6:48example, here I have a VWAP band, so I
  198. 6:50can place my stop gain a little bit
  199. 6:53below this VWAP.
  200. 6:54If there were a settlement here, I’d get
  201. 6:56out here. If there were a 00 region here
  202. 6:58, I’d get out here. If there were
  203. 7:00another VWAP band here, I’d get out here
  204. 7:02.
  205. 7:03So, if there’s a resistance in the way
  206. 7:05and I have confluence—and this usually
  207. 7:07happens—the band is aligned with the
  208. 7:09settlement, which is aligned with the 00
  209. 7:11region and the day's high, well, that’s
  210. 7:13where you get out, because the price
  211. 7:15won’t break through that region,
  212. 7:16understand?
  213. 7:18I enter on a crossover and exit at
  214. 7:20support and resistance.
  215. 7:23And the support and resistance I like
  216. 7:25are, first, VWAP bands, second, the
  217. 7:27day's highs and lows regions, third, the
  218. 7:2900 region, and I’ve also been using the
  219. 7:31prior settlement a lot, so if three of
  220. 7:33those are together, that’s where I’ll
  221. 7:36exit my trade.
  222. 7:38If I trade with two or more contracts,
  223. 7:40then I can extend it by taking partial
  224. 7:42exits.
  225. 7:43Do you want me to explain that to you?
  226. 7:45Leave it here in the comments. Remember
  227. 7:47, you guys are the ones in charge of the
  228. 7:49class.
  229. 7:50And if you’re enjoying this video, don't
  230. 7:52forget to like it to help Japa out, okay
  231. 7:54?
  232. 7:56And if you’re not subscribed, have some
  233. 7:58shame. Subscribe to the channel and help
  234. 8:00me hit half a million. We’re already at
  235. 8:02474,000. Just a little bit more to reach
  236. 8:05500,000, folks. Help me out there, okay
  237. 8:07?
  238. 8:08So, it crossed, ignition candle, I enter
  239. 8:10long on the next candle at the high's
  240. 8:12breakout.
  241. 8:14Stop loss below the ignition candle and
  242. 8:16target at the next support or resistance
  243. 8:18in the way, okay?
  244. 8:20Right?
  245. 8:21So, oh, and besides that, I’ll also add
  246. 8:24VWAP bands to the indicators to help
  247. 8:27with support and resistance, and the
  248. 8:30MACD histogram that everyone loves, set
  249. 8:32to 55-269 with a 9-period moving average
  250. 8:35on top and horizontal lines at 25, 10,
  251. 8:38-10, and -25.
  252. 8:40What does that mean?
  253. 8:42If the histogram is zig-zagging between
  254. 8:4410 and -10,
  255. 8:48the market is sideways. And I don't
  256. 8:50trade sideways. Above +25,
  257. 8:54there is bullish strength.
  258. 8:56Below -25,
  259. 8:59selling strength. I can extend the trade
  260. 9:02. And how do I use the MACD along with
  261. 9:03the moving average crossover? It’s like
  262. 9:06this. You use it like this. For example
  263. 9:08, it crossed, ignition candle, I entered
  264. 9:10long here, okay?
  265. 9:13As long as the MACD is green above the
  266. 9:15zero line and above this yellow line,
  267. 9:17which is the 9-period moving average.
  268. 9:19This 9-period moving average here, okay
  269. 9:21?
  270. 9:22Above the 9-period moving average and
  271. 9:25above +25, extend the trade until the
  272. 9:27resistance.
  273. 9:29If it starts losing the 25 level, starts
  274. 9:32losing the 9-period moving average,
  275. 9:34close the trade and get out.
  276. 9:36But again, if there's support, or it's
  277. 9:38stuck in the middle, get out.
  278. 9:41So these horizontal lines help you see
  279. 9:43the sideways market and the strength of
  280. 9:45the uptrend and downtrend.
  281. 9:48Let’s set up this strategy in Profit.
  282. 9:51We are here on the Profit platform
  283. 9:52trading the mini index on a 2-minute
  284. 9:54chart.
  285. 9:55"But Maçuda, there is no 2-minute option
  286. 9:57here.""There's only 1, 5, and 15.""How
  287. 9:59do I set it to 2 minutes?" Type 'two' on
  288. 10:02your keyboard, and it appears right here
  289. 10:04: 2 minutes. That's all there is to it.
  290. 10:06There, I'm already on the 2-minute chart
  291. 10:08. Let me delete my study here, right,
  292. 10:10which was beautiful today.
  293. 10:12The famous crystal ball. Now yes, I am
  294. 10:14on the 2-minute chart, okay?
  295. 10:17Let's now add the moving averages using
  296. 10:19this button here.
  297. 10:20Insert indicator. More indicators. Let's
  298. 10:23look for: moving average. It's already
  299. 10:25highlighted here. I selected it.
  300. 10:28I can place it over the chart or below
  301. 10:30the chart.
  302. 10:31Always place the indicator over the
  303. 10:32chart. Insert. How many periods? Five.
  304. 10:36OK. See, I already added the 5-period
  305. 10:38average. Now let's add the 21-period
  306. 10:40average. Insert 21-period average.
  307. 10:44OK. Done. Here are the two averages, the
  308. 10:475 and the 21.
  309. 10:48Let's also add the MACD, okay?
  310. 10:51Come here, type MACD, and choose only
  311. 10:54the histogram, okay?
  312. 10:56Histogram. Don't pick the line histogram
  313. 10:58; it's awful. Pick only the MACD
  314. 11:00histogram. I selected it.
  315. 11:03The MACD cannot be placed on the chart,
  316. 11:05so I put it outside the chart in a new
  317. 11:07window.
  318. 11:08Insert. OK. Done. Now let's configure
  319. 11:12these moving averages, okay?
  320. 11:14The first average, the 5, is stuck to
  321. 11:16the price.
  322. 11:18I selected it, come here to properties.
  323. 11:21Now, let's go.
  324. 11:23Period 5, type: I change it to
  325. 11:25exponential. Always work with
  326. 11:27exponential moving averages, they are
  327. 11:29better, okay? If you want me to explain
  328. 11:31that, leave it in the comments too.
  329. 11:33Appearance: leave it here in the color
  330. 11:36blue.
  331. 11:37Light blue.
  332. 11:38Light blue is fine here, and thickness
  333. 11:40two looks better.
  334. 11:43Values: closing price is better, and the
  335. 11:45period. I won't touch those, okay? Apply
  336. 11:48. OK. Done. The first average is already
  337. 11:50configured. The second one, the one
  338. 11:52furthest from the price, is the 21. I
  339. 11:54selected it, properties.
  340. 11:58Look.
  341. 12:00Period 21, type: exponential.
  342. 12:03I won't touch the period.
  343. 12:05Appearance: red color.
  344. 12:09Red here.
  345. 12:11Red and thickness two.
  346. 12:13And closing values.
  347. 12:15Apply. OK. Done. The crossover is set up
  348. 12:18. Look here. Today, right? Price fell,
  349. 12:21formed a double bottom, and then, look,
  350. 12:23it crossed. Look at the ignition candle
  351. 12:25here. Entered long here. Stop loss was
  352. 12:28expensive, $ 112.
  353. 12:31And the target reached here, hit $ 147,
  354. 12:34okay?
  355. 12:35Beautiful buy crossover today that
  356. 12:37happened just now at 1 PM.
  357. 12:39For the exit, you will place the VWAP
  358. 12:41bands here. I’ll add them for you in a
  359. 12:43moment. And now let’s configure the MACD
  360. 12:45, as this one is more work, okay? So it
  361. 12:48comes from the factory at 26 12 9.
  362. 12:51I will select the MACD, go here to
  363. 12:54properties, okay?
  364. 12:56And here, let’s adjust this. Long
  365. 12:59average 26. I change it to 55.
  366. 13:02The short 12 I change to 26 and the
  367. 13:05signal 9 remains.
  368. 13:07Appearance doesn't need more coloring.
  369. 13:10Now, look, positive histogram in bright
  370. 13:12green.
  371. 13:14Negative histogram in red, right?
  372. 13:17Oh, done.
  373. 13:19Apply. OK. Done. It looks great now.
  374. 13:23Now let’s add the 9-period average here
  375. 13:24.
  376. 13:26Selected histogram, right-click mouse
  377. 13:28and insert moving average.
  378. 13:30Nine periods. OK. Needs to change to
  379. 13:33exponential. It’s always good. Select
  380. 13:36properties.
  381. 13:39Come here, change to exponential and
  382. 13:41appearance, if you want to leave it in
  383. 13:42yellow to highlight it more.
  384. 13:45Apply. OK. There is the 9-period average
  385. 13:48. Let’s add the horizontal lines now.
  386. 13:51Click on this zero here.
  387. 13:53Right-click mouse, price scale.
  388. 13:56Come here now.
  389. 13:58Right here, in the fixed grid.
  390. 14:00This is specific to the 2-minute MACD 55
  391. 14:0426 9. Okay, folks, for others it's a
  392. 14:06different line. Let’s go, there is a 5-
  393. 14:08minute class here on the channel. Put
  394. 14:10here, look, 25.
  395. 14:14Include -25 include.
  396. 14:18Bullish force, selling force and 10
  397. 14:21include -10.
  398. 14:24Sideways market.
  399. 14:26So the 25 I paint in blue.
  400. 14:29Select here, paint in blue.
  401. 14:31Blue.
  402. 14:33Blue.
  403. 14:36And the 10 and -10 in red because it
  404. 14:38shows a sideways market.
  405. 14:40And I don’t trade sideways.
  406. 14:43OK.
  407. 14:44Let’s go.
  408. 14:47Configured. OK. Done. There are the
  409. 14:50lines, look.
  410. 14:51Sideways market. Sideways market. It
  411. 14:54keeps zigzagging here, between 10 and
  412. 14:56-10.
  413. 14:57Look at this trend, force above 25,
  414. 14:59right?
  415. 15:00So, it’s all set up. And to close, let’s
  416. 15:03add the VWAP bands now.
  417. 15:05Insert more indicators.
  418. 15:09First you put here, type VWAP, select
  419. 15:12VWAP, insert VWAP and the bands.
  420. 15:16VAP Bands are also two indicators, you
  421. 15:18have the VAP and the Bands. OK. OK.
  422. 15:22There we go, that's our VAP bands.
  423. 15:25>> Whoa, look at this.
  424. 15:28Today's entry was at 1 PM, broke the
  425. 15:30ignition candle, stop loss was expensive
  426. 15:33, and the target was at the VAP with
  427. 15:35cash in hand.
  428. 15:38The MACD showed conditions to extend the
  429. 15:40trade, folks. I could have held it a bit
  430. 15:42longer.
  431. 15:43But look, VAP is the toughest region to
  432. 15:45break through.
  433. 15:47So, always exit a bit early and secure
  434. 15:49some cash in your pocket.
  435. 15:51Guilherme, did you like today's class?
  436. 15:53Did you guys watching the live stream
  437. 15:55also like today's class? Edson, everyone
  438. 15:57who was there. So, like the video, share
  439. 16:00it with your friends, a big hug.
  440. 16:02Leave a comment on what you thought
  441. 16:04about today's class, and a big hug. See
  442. 16:06you in the next class.

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