Five Minute Intraday Forex Scalping Strategy

August 8, 2016

2452

5 minute Intraday

This system works on 5 minute candle chart and the pairs that you can use on this system are EURUSD, GBPUSD, USDJPY, EURJPY.

Indicators are listed below:1.

EMA = 10 & 21
SMA = 50
SMA angle window:
SMA angle indicator;
– EMA based on first indicator data overlaying this indicator.

Set up:

0.1 & -0.1 on EURUSD, GBPUSD and USDJPY
0.15 & -0.15 on USDJPY
0.4 & -0.4 on all pairs

ADX window set up:

1.) 50 SMA angle must be more than 20 degree.

Subjective measurement, not accurate.
Used in the beginning of the thread and changed late to 21 MA on the SMA angle indicator as a guide.
Applicable to this system because the angle of the 50 MA is the main principle of the system.

2.) 21 EMA on SMA angle indicator must cross the 0.1 or -0.1/0.15 or 0.15 line.

3.) The price must pull back through 10 EMA to 21 EMA.

4.) The price should stay on the correct side of the small resistance or support.

5.) SMA angle indicator must be higher or lower than 0.2 & -0.2 (but support and resistance is more accurate.)

Rule 1: Small trend line rule:

Make sure that the price and candles stay on the correct side of the small trend line.
If breakout occurs, cancel the set ups or possible trades.

Rule 2: Specific manner of pullback of candles towards war zone:

No steep pullbacks, just smooth and flat pullbacks of the candles.
There must be no sharp V shape change of direction. It must be smooth rounding of top or bottom. (Wavelike pullbacks).
* Ascending of descending triangle being formed between resistance or support level and small trend drawn.

Rule 3: Pullback into war zone:

Rule 4: Additional ADX rule (not yet fully tested):

For a long trade, the positive line (Blue) must be above the negative line (Red) with Isma line crossed the red line to go in between Blue and red line
For a short trade, the negative line (Red) must be above the positive line (Blue) with Isma line crossed the blue line to go in between Blue and red line.
The trend line must be above 25 level
If the ratio between the positive and negative line is almost 2:1, expect the pullback only up to the 10MA and enter the trade.

Use a market order to enter within the war zone.
Put Stop Loss 6+spread pips away
Move stop loss to breakeven after a clean 6 pips gain/profit (brokerage/spread included
No Trailing Stop Loss
Put profit limit on 10-15 pips

There are a lot of changes during the trade;

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