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