The following is a 5-minute scalping forex trading strategy for the EURUSD, GBPUSD, USDJPY and EURJPY currency pairs. Scalping is a special type of trading strategy that helps the trader to make significant profits on minor price changes.
In this strategy, the trader needs to make a minimum of 10 trades within a single day in order to capitalize on any minor price changes. A strict exit strategy must be implemented in order to minimize any potential losses. In this particular strategy, the holding time is 5 minutes. This method requires precise execution and nimble trading.
Indicators to Be Used
In this trading strategy, the indicators that will be used are the 10 and 21 EMA, and the 50 SMA.
You should then open an ADX indicator in a different window set at 13.
At least 3 criteria must be satisfied for this trade.
EURUSD 5-minute timeframe - Two bullish signals are shown with the circles on the chart. Circles 1 show the first buy signal and circles 2 show the second buy signal. The small support trendline is shown as the dotted black line. The price action accurately reverses in the war zone and continues higher.
Trade Criteria to Be Satisfied for This Trading Strategy
Trade Set up Rules
EURUSD 5-minute timeframe - Two bearish signals are shown with the circles on the chart. Circles 1 show the first sell signal and circles 2 show the second sell signal. The small resistance trendline is shown as the dotted black line. The price action accurately reverses in the war zone and continues to the downside.
Enter the trade in the war zone by making a market order and putting your stop loss 6 or more pips away. Do not use a trailing stop loss. Profit limit must be between 10 and 15 pips. Only trade where there is a good set up. Enter on small candles and look out for flat pullbacks.