Booth #6419
The Six Most Powerful Bars:
The Elephant Bar
The Colored Tail Bar
The Non-Colored Tail Bar
The Kamikaze Plays:
The Two Times You Should Risk It All
Today on Stage:
4:15 – 5:30
Booth #6419
Our first 5-minute bar must be one of these six bars
The 5-Minute Buy Strategy
First 5-minute Set-up Criteria:
1) First 5-minute bar of the market (SPY and/or QQQ) must be one
of the 3 must bullish bars;
2) First 5-minute bar of your stock must look similar to the first 5-
minute bar of the market;
First 5-minute Action Criteria:
1) If both 5-minute bar’s are bullish, buy 1 tick above the high of
the first 5-minute bar…whenever that occurs;
2) Place a stop 1 tick below the low of the first 5-minute bar;
3) Move stop to breakeven after a two bar rally
4) Take profits on any multi-bar rally;
5) Hold 1/2 with a boom or bust approach
The 5-Minute Sell Strategy
First 5-minute Set-up Criteria:
1) First 5-minute bar of the market (SPY and or QQQ) must be one
of the 3 must bearish bars;
2) First 5-minute bar of your stock must look similar to the first 5-
minute bar of the market;
First 5-minute Action Criteria:
1) If both 5-minute bar’s are bearish, short 1 tick below the low of
the first 5-minute bar…whenever that occurs;
2) Place a stop 1 tick above the high of the first 5-minute bar;
3) Move stop to breakeven after a two bar decline;
4) Take profits on any multi-bar rally;
5) Hold 1/2 with a boom or bust approach
The 5-minute Buy Strategy
Criteria One Criteria Two Buy Action
Stop
Market’s First 5-minute Bar Stock’s First 5-minute Bar Buy Above High of 5-min
Bar with a stop below low
The 5-minute Sell Strategy
Criteria One Criteria Two Sell Action
Stop
Market’s First 5-minute Bar Stock’s First 5-minute Bar Sell Below Low of 5-min
Bar with a stop Above High
Real 5-minute Examples
1st 5-Minute Short
The 5-minute Trader trades I the direction of:
1) The first 5-minute bar of the market and
2) The first 5-minute bar of the stock
Stop
Bear *The two must be in sync (same color)
Elephant
Short
Assume this
to be the
market’s 5-
minute bar
1st 5-minute Short
50ma
Stop
Short
Colored Tail Bar
Velez Trading Tip:
The drop far below the key moving average and the flip
from red to green would ignite profit taking for my traders
Assume this to be the market’s 5-minute bar
1st 5-Minute Short
The first 5-minute high remains the high of the day
Stop
Short Assume this
to be the
market’s 5-
minute bar
Velez Trading Tip:
This is why employing the “boom or bust” with a
break-even stop on half your lot earns more
money over time then not employing it.
First 5-minute Buy
Buy
Assume this
to be the
market’s 5-
minute bar
Stop
First 5-minute Buy
Assume this
to be the
market’s 5- 20ma
minute bar
Buy
Stop
Circles show where my traders are taught to add or re-enter
First 5-minute Buy
Profit taking bar
Profit taking bar
Buy Velez Trading Tip:
Some traders take profits on half relatively
quickly and let the back half run on a boom or
No colored tail bust mentality using a break-even stop.
Stop
First 5-minite Buy w/ Boom
Assume this
to be the
market’s 5-
minute bar
Velez Trading Tip:
Buy Some traders take profits on half relatively
Colored quickly and let the back half run on a boom or
Tail Bar bust mentality using a break-even stop.
Stop
Advanced 5-Minute
Strategies
Name The Trading Events
3
6
1
2 5
4
Name The Trading Events
4
1
6419
The Kamikaze Plays:
The Two Times You Should Risk It All
Today on Stage:
4:15 – 5:30
Booth #6419