There are no best 5 minutes scalping indicators; what really matters is to understand the structural flow of the forex market so that you will know when to apply for your entry in 5 minutes, especially for scalping. At the very top of this article, you find an explanation with an image description of scalping in both 5 minute and 1 minute timeframe. The forex 15 minute strategy am about to share is more than a decade old, it has been used and tested by many traders; when trading this strategy you will have to consider the present market structure of the currency pair and the dominant trend as well.
This trading strategy can be used for swing trade for day traders with low-risk management and a low-volume filter to prevent day traders from losing money. Timeframe: 1min or 5min Recommended. Currency pairs All Major Currency pairs. Trading sessions London and New York do not trade before economic news Avoid major news hours. Stop loss: Initial Stop loss 15 pips. Profits target 10 — 15 pips. After 5 pips in gain move stop loss at breakeven. Every method has flaws and weak points, which traders must be aware of in order to prevent false signals, reduce losses, and boost win rates and profits.
When scalping gold, traders will have to set their stop losses and take profit because of its volatility. Traders scalp using the 1 minute to 15 minutes. There is really no best timeframe for scalping. The 5-Minute Momo strategy does just that. The five-minute momo looks for a momentum or "momo" burst on very short-term five-minute charts. First, traders lay on two technical indicators that are available with many charting software packages and platforms: the period exponential moving average EMA and moving average convergence divergence MACD.
EMA is chosen over the simple moving average because it places higher weight on recent movements, which is needed for fast momentum trades. While a moving average is used to help determine the trend, MACD histogram , which helps us gauge momentum, is used as a second indicator. This strategy waits for a reversal trade but only takes advantage of the setup when momentum supports the reversal enough to create a larger extension burst.
The position is exited in two separate segments; the first half helps us lock in gains and ensures that we never turn a winner into a loser and the second half lets us attempt to catch what could become a very large move with no risk because the stop has already been moved to breakeven. Here's how it works:.
Although there were a few instances of the price attempting to move above the period EMA between p. We waited for the MACD histogram to cross the zero line, and when it did, the trade was triggered at 1. We enter at 1. Our first target was 1. It was triggered approximately two and a half hours later. We exit half of the position and trail the remaining half by the period EMA minus 15 pips.
The second half is eventually closed at 1. ET for a total profit on the trade of The math is a bit more complicated on this one. The stop is at the EMA minus 20 pips or The first target is entry plus the amount risked, or It gets triggered five minutes later.
The second half is eventually closed at ET for a total average profit on the trade of 35 pips. Although the profit was not as attractive as the first trade, the chart shows a clean and smooth move that indicates that price action conformed well to our rules. We see the price cross below the period EMA, but the MACD histogram is still positive, so we wait for it to cross below the zero line 25 minutes later. Our trade is then triggered at 0. As a result, we enter at 0. Our stop is the EMA plus 20 pips.
At the time, the EMA was at 0. Our first target is the entry price minus the amount risked or 0. The target is hit two hours later, and the stop on the second half is moved to breakeven. We then proceed to trail the second half of the position by the period EMA plus 15 pips. The second half is then closed at 0. In the chart below, the price crosses below the period EMA and we wait for 10 minutes for the MACD histogram to move into negative territory, thereby triggering our entry order at 1.
Based on the rules above, as soon as the trade is triggered, we put our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked, or 1. It gets triggered shortly thereafter. The second half of the position is eventually closed at 1. Coincidentally enough, the trade was also closed at the exact moment when the MACD histogram flipped into positive territory.
As you can see, the five-minute momo trade is an extremely powerful strategy to capture momentum-based reversal moves. However, it does not always work, and it is important to explore an example of where it fails and to understand why this happens. As seen above, the price crosses below the period EMA, and we wait for 20 minutes for the MACD histogram to move into negative territory, putting our entry order at 1.
We place our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked or 1. The price trades down to a low of 1. It then proceeds to reverse course, eventually hitting our stop, causing a total trade loss of 30 pips.
This method requires timed execution and nimble trading. It would be best to open an ADX indicator in a different window set at Circles one show the first buy signal, and circle 2 show the second buy signal. The minor support trendline is shown as the dot black line. The price action nicely and accurately reverses in the war zone and continues higher.
Circles one show the first sell signal, and circle 2 show the second sell signal. The minor resistance trendline is shown as the dot black line. The price action nicely and accurately reverses in the war zone and continues to the downside. Get the trade entry in the war zone by making a forex market order and putting your stop loss six or more pips away. Do not use a trailing stop loss.
The profit limit must be between 10 and 15 pips. Only trade where there is a good setup. Enter on small candles and lookout for flat pullbacks. Save my name, email, and website in this browser for the next time I comment. Attachment The maximum upload file size: 5 MB. 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. Sponsored by. Close X.
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