The following is a 5-minute currency trading strategy for the EURUSD, GBPUSD, USDJPY, and EURJPY currency pairs. Scalping is a special type of business strategy that helps the trader make significant gains in minor price changes.
In this strategy, the operator must carry out a minimum of 10 operations in a single day to capitalize on any minor change in prices. A strict exit strategy must be implemented to minimize any potential loss. In this particular strategy, the waiting time is 5 minutes. This method requires precise execution and agile trade.
Indicators to use
In this negotiation strategy, the indicators that will be used are EMA 10 and 21 and SMA 50.
Then you must open an ADX indicator in a different window set to 13.
At least 3 criteria must be met for this trade.
Trade Criteria to Be Satisfied for This Trading Strategy
The first criterion is that the angle of 50 SMA must be greater than 20 degrees. The measurement does not need to be absolutely accurate, a subjective estimate is sufficient.
The second criterion is that the price should go back through 10EMA to 21EMA. The area between 10EMA and 21EMA is the zone of fire or war.
The third and final criterion for this trade is that the price must be maintained on the appropriate side of the small resistance or support line. You must draw a trend line from the last maximum or minimum before the 50SMA crossing to the next maximum or minimum. This will form a small resistance or support line.
Trade Set up Rules
The price and candles should be kept on the right side of the small trend line. Otherwise, possible transactions will be canceled.
The recoil of the sails towards the war zone must be smooth and flat.
After identifying the first sail to enter the war zone, wait for the second sail to recede from 21MA to 10MA and then enter the trade in the retreat.
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. The earnings limit must be between 10 and 15 pips. Only operate where there is a good configuration. Enter small candles and look for flat setbacks.