CHART
5M
STEP 1: SETUP — ESTABLISH CONTEXT
- Open the 5-minute chart and add the 20 SMA — this is your anchor.
- Trend check: price above a rising 20 SMA = bullish context. Price below a falling 20 SMA = bearish context.
- Distance check: too far from the 20 SMA = chase zone. Close to it = healthy setup.
- Avoid: price chopping across the 20 SMA back and forth.
STEP 2: THE POWERBAR — STRUCTURE
TREND · PULLBACK · POWERBAR · BREAK
= CLEAN CONTINUATION
STEP 3: ENTRY RULES — BREAK OR PULLBACK
▼ SHORT · BELOW 20 SMA
Sell the bearish PowerBar.
TRIGGER
Bearish PowerBar — wide red body, close near the low, breaks structure down near or under a falling 20 SMA.
AGGR.
On break of PowerBar low
SAFER
On bounce that fails at the 20 SMA
STOP
↑ above PowerBar high / 20 SMA
TP
→ 2R · runner if SMA holds
▲ LONG · ABOVE 20 SMA
Buy the bullish PowerBar.
TRIGGER
Bullish PowerBar — wide green body, close near the high, breaks structure up near or above a rising 20 SMA.
AGGR.
On break of PowerBar high
SAFER
On pullback that holds the 20 SMA
STOP
↓ below PowerBar low / 20 SMA
TP
→ 2R · runner if SMA holds
STEP 4: THE 20 SMA — 4 JOBS
- Trend filter. Which side of the SMA is price on — above (bullish) or below (bearish)?
- Distance filter. PowerBar too far from SMA = overextended, don't chase.
- Pullback zone. A controlled pullback back to the SMA is the safer re-entry.
- Stop reference. Loss of SMA on a pullback setup = thesis broken, exit.
STEP 5: WHEN NOT TO TRADE
✓ IDEAL
- Wide-range candle with strong close near end
- Breaks structure or prior swing level
- Price is near the 20 SMA — not overextended
- During open window or PM expansion
✗ AVOID
- Large candle with ugly wicks + indecision
- Price chopping across the 20 SMA
- PowerBar far from SMA — overextended
- Dead midday tape with no volume
STEP 6: RISK MANAGEMENT
Stay in healthy trends. Stop beyond the PowerBar or the 20 SMA. Partial at 2R and hold a runner while the trend respects the anchor.
STOP
BEYOND BAR
TARGET
2R + RUN
TRAIL
ON 20 SMA