Why use the 5-min chart?
Regardless of the day trading platform you use, you will have the ability to switch time frames on your chart. For minute-based charts, NinjaTrader provides everything from a 1-min to a Yearly chart. When using a 5-min chart, you have the best of both worlds: a summarized chart (not too much data) and the ability spot moves seen on all the multiples of five minutes (10, 15, 1-hour, etc.). For example, news events will inevitably occur and they can influence price greatly for five to 15 minutes on average. If you’re using a 5-min chart, you can make an immediate decision to enter the market long or short instead of waiting around for the current 15-min (or longer) candle to form.
What is front-running?
Front-running is often used as a negative term in describing brokers and investment institutions who act against the interest of their clients in the markets. At Day Trade to Win, John Paul’s use of the term describes a strategy in which you place your targets and entries one tick in front of everyone else to ensure you get filled. Order fulfillment is on a first-come, first-served basis, so becoming first in line is an effective strategy in getting what you want out of the markets. You can use this strategy with nearly any market.
Watch the previous video in the series by clicking here.