5 Minute Forex Scalping Strategy

5 Minute Forex Scalping Strategy

The following is a 5-minute forex trading strategy for the EURUSD, GBPUSD, USDJPY, and EURJPY currency pairs. Scalping is a special type of trading strategy that helps the trader make a significant profit on minor price changes.

In this strategy, the trader must perform a minimum of 10 operations in a single day to capitalize on any minor changes 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 trading.

Indicators to use

In this trading strategy, the indicators that will be used are the EMA 10 and 21 and the SMA 50.

Then you need to open the ADX indicator in the different windows set to 13.

At least 3 criteria must be met for this trade.

EURUSD 5 minute time frame – Two bullish signals are shown with circles on the chart. Circles 1 shows the first buy signal and circles 2 shows the second buy signal. The small support trend line is shown as the dotted black line. Price action is precisely reversed in the war zone and continues to rise.

Trade Criteria to Be Satisfied for This Trading Strategy

The first criterion is that the 50 SMA angle must be greater than 20 degrees. The measurement need not 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 fire or war zone.

The third and final criterion for this trade is that the price should be kept on the right side of the small resistance or support line. You should draw a trend line from the last high or low before the 50SMA crossover to the next high or low. This will form a small resistance or support line.

Trading setup rules

Price and candles should be kept on the right side of the small trend line. Otherwise, possible trades  will be canceled.

Pullbacks of candles towards the war zone should be smooth and flat.

After identifying the first candle to enter the war zone, wait for the second candle to retreat from 21MA to 10MA and then enter the trade on the retreat.

EURUSD 5 minute time frame: Two bearish signals are shown with circles on the chart. Circles 1 show the first sell signal and circles 2 show the second sell signal. The small resistance trend line is shown as the dotted black line. Price action is precisely reversed in the war zone and continues to the downside.

Trade

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 profit limit must be between 10 and 15 pips. Only trade where there is a good configuration. Get into small candles and look for flat pullbacks.

Perfect Support and Resistance trading technique

Perfect Support and Resistance trading technique

  • swing highs and lows

Perhaps the best support and resistance levels are traditional swing/wave highs and lows. These are the levels we find by zooming in over a longer time frame, usually a weekly chart or possibly even monthly. This is where we find a ‘bird’s eye’ of the market and the major turning points within it. What we want to do is just identify clear levels that the values are either inverted at high or low and draw horizontal lines on them. These levels do not have to be ‘accurate’, they can intersect price bars or they can be fields rather than exact levels. You can consider this as the first step in relation to support and resistance levels and the first thing you should do when analyzing any chart.

Notice the Ing Birds Eye View, we get by zooming out for the weekly time frame. Here we can identify key support and resistance levels, trends, and trade ranges.

Next, we want to set a deadline for the daily chart, to raise our level some more. The daily chart is the primary time frame for finding a trade setup, so it is important that we understand the broader picture on the weekly chart but also that we have identified short-term levels on the daily. I have a good video on this topic of mapping the market from a high time frame to a lower level, do check it out. An important point to remember is that when you zoom in daily or even 4 hours or 1 hour, you always leave high time frame levels on your chart because they are so important.

Note, by zooming into the daily chart from the weekly example above, some similar weekly levels are still in play and some new short-term daily chart levels that we can’t actually see on the weekly …

  • Swing point level rise in trends

Have you heard that when the market crosses support then old support becomes the new resistance and when the market crosses resistance then old resistance becomes the new support”? It refers to the occurrence of a market-making higher or higher lows or lower lows and lower lows and lower lows in an up or downtrend. We should mark these piping stepping levels when creating a form, then when the market breaks or goes through them we can trade back to those levels, also known as trading deficiencies. It also gives us a way to map a market trend – when you see this move you know that you have a solid trend.

These levels are good entry points as well as points to define risk or prevent loss points. You can keep your stop loss on the other side of these levels.

For example, in the chart image below, we see a clear downtrend in place. When the price fell below the previous support level, this level ‘flipped’ to the resistance level which acted as high-probability entry levels if the price went back above them.

  • Swing Levels as Prevention and Risk Management

We can look for swing points to sell or buy, even if they are not part of a trend. Markets spend most of their time in consolidated and trading ranges, so we need to be able to find trades within those market conditions, not just trends.

We can simply use the most recent swing high or low as a risk point to define your next trade, which you can see in the chart example below.

In the image below, note that the value decreased through the support, fell down, then it remained contained under the level, which was then acting as a resistance. We can look to sell at or below that level if the price lies below it. In this way, the level is being defined where we will look to take our next trade and we know if the value moves beyond that level then our trade idea is invalid, so meeting our stop loss beyond that level is clear. We can also use recent swing points as a target of profit. In the example below, note how we can use recent swing lows as a target for profit.

 

Support and Resistance level

Next, let’s talk about dynamic support and resistance levels. By dynamic I mean moving level, in other words, moving average. According to what price a moving average moves up or down, and you can set it to consider a certain number of times or time periods.

My personal favorites are the 21 and 50 period EMAs or exponential moving averages. I like to use them mostly on daily chart timeframes, but they can also be useful on weekly charts. These EMAs are good for quickly identifying the market trend and joining that trend. We can see the value for testing the moving average after breaking up or down, and then enter it at or near that moving average. Ideally, the market would have proved itself by testing the level and bouncing first, then you could enter that second return.

Here is an example of a 50-period EMA that is used to identify a downtrend as well as to find an entry point within it. Ideally, we would see the 1 hour, 4 hour or daily chart price action sell signal as a pass price or hit a level at some point that would return to a downtrend in this way…

The 21 period EMA can be used in a similar way as we see below. Keep in mind, the shorter the EMA period, the more frequent the interaction with the EMA. Therefore, in a less volatile market, you may want to use a shorter duration EMA like 21 instead of longer ones like 50.

 

50% Fibonacci Retracement level

Whenever I do not use traditional Fibonacci retracements and all their extension levels, there is a proven phenomenon that over time, markets often keep the swing half-point (about 50 to 55% of the area), where the market makes huge moves. , Bounces again in the original direction. This is partly a self-fulfilling phenomenon and partly a result of general market dynamics. To learn more, I would like to see this lesson on how to do 50% retracement.

Look at this example chart, which has a big move that retreats to a level of around 50% on two separate occasions, providing a very high-probability entry scenario, especially on the second bounce …

  • Range Supports and Resistance price level

Trading range support and resistance Price levels can provide many high-probability Best entry opportunities for the price action trader. The main idea is to first identify a trading price range, which is basically a price bouncing between two parallel price levels in the market, and then look for price action signals at those levels or look for the level to fade on a blind entry. By fading the level, I mean if the market is moving forward and trade the opposite way, ie sell, at the major resistance of the range. Or, you want to buy range support. You can literally do this as long as the price is clearly broken and locked out of range. This is a much better approach than most traders take in the trading range – trying to predict a breakout and fall back into the whipsawed price range before that happens.

Note that in the example image below, we had a large trading range because the price was clearly oscillating between resistance and support. We could have entered either the second test of resistance (short) or on the second test of support (long) either blindly or on the price action signal like the pin bar signal, we see below on the support.

  • Event area of support and resistance

The last type of support or resistance we are going to discuss today is the event area. The event area is a proprietary form of support and resistance that I detail in my Price Action Trading course, but, for now, make sure you have a good basic understanding of them.

Incident areas are the major levels in the market where a large price action event occurred. This may be a major reversal or a clear price action signal, leading to strong directional action.

In the example chart below, you can see a clear event level that was created after a strong bearish reversal bar on the weekly chart (there was also a large daily chart bearish pin bar). As Price approached a rebound at that level a few months later, we wanted to ensure that level on our chart as it was a strong level to sell at a blind entry or 1 hour, 4 hours. Or sell daily chart signals.

Fibonacci Pattern Secret Strategy

Fibonacci Pattern Secret Strategy

 

  • Tools

    • Fibonacci tool Retracement: Primary used at 61.8%
    • Fibonacci tool Extensions: Primary used at 127.2% & 161.8%.
  • Time Frame

    • The Fibonacci ABCD Pattern was designed as a day/ H4 swing trading strategy
  • Strategy

    • The strategy for the ABCD pattern is very similar to the other well known
      Advanced Pattern. We want to identify 3 market moves and 2 major
      Fibonacci region. A combination of these moves makes 4 points
      (A, B, C, D) that complete the pattern.
  • Rules of Trading- Criteria no 1 

    • The ABCD Pattern begins with a market movement / impulse leg that establish
      our A and B points.
      Once the A and B points have been identified, we then look for our first criteria
  • Criterion 1: Market completes at least 61.8% (C) point
    retracement of the AB.
    Note: BC The move remains valid as long as it is at least 61.8%.
    A candle is not closed beyond 78.6% retracement of AB.

Note: C can extend beyond the endpoint (candlewick)
61.8% retracement of AB until the candle is closed
AB’s 78.6% retracement. An example of this is presented below.

 

Rules of Trading: Criteria 2

  • If criterion 1 is met, see criteria 2.
    Criteria 2: The market makes point (D) completion point by fulfilling at least one
    A harmonic speed of AB leg coming at 127.2% extension
    AB for ratios can be a measurement to confirm confluence.
    Should be taken and the expansion should come to around 138.2% a
    161.8%.
    Note: The D point is valid as long as it is  127.2%
    AB’s extension is not a candle beyond 161.8% AB extension.

Note: In a valid CD, there must be at least 127.2%. Failed to
Getting 127.2% invalidates the pattern. An example of this
Presented below.

Trade Management

Simple And Easy Tools

Entry- Place Trade at D Point of  Fibonacci extension 127.2% of AB

Stop Loss- 10 pips +/-161.8% Fibonacci extension of AB

If buy entry, stop loss goes 10 pips below the 161.8% Fibonacci extension of AB.

If sell entry, stop loss goes 10 pips above the 161.8% Fibonacci extension of AB.

Target 1: 38.2% Fibonacci retracement of AD move. When reached, move stops loss to
breakeven.
Target 2: 61.8% Fibonacci retracement of AD move. When reached, place trail stop to
+/- 10 pips.
Here is an example of an ABCD Fibonacci Pattern with entry, stops loss, & targets:

Aggressively buys/sells

Entry: If the value closes between 61.8% and 78.6% Fibonacci of point C, take a
A long or short position in the market towards order flow.
Note: Entry against order flow is less likely and
It exposes you to greater risk. Value cannot be closer to 78.6% or more
This setup below 61.8% invalidates.

 

Trade Management

Stop Loss: 10 pips +/- of A Point.
If buy entry, stop loss goes 10 pips below A point.
If sell entry, stop loss goes 10 pips above A point.
First target: 38.2% Fibonacci retracement of BC points move. When reached, move stops loss to
breakeven.
Second target: This is the pattern completion point D or the Fibonacci extension 127.2%. When
reached, close trade immediately and look for reversal or trail stop loss to structure +/-
10 pips.
Here is an example of the C  point buy/sell with entry, stop loss, & target:

Trendline Breakout Best Trading Strategy

Trendline Breakout Best Trading Strategy

That trendline breakout forex trading strategy works really well with the trendline trading strategy.

Think of it as being a trendline on the price and you want to take trades that keep it going.

  • With the trendline trading strategy, you are trading up or down on the trendline. This means that the price respects the trendline.
  • With the trendline breakout forex trading strategy, rules come into play when the trendline is cut or broken based on price.
  • This means that the current trend has changed now so you have to be on the lookout to exit your trades based on the trendline trading strategy you have and now Place a trade in the opposite direction on the trendline breakout.

Rules-

  • -Always wait beyond the current candle trendline to confirm the break.
  • Enter into the trade when price Come back and do retrace from the Trend  line
  • -Set your stop some beyond the trendline and set your limit at least twice from your stop.

Trendline Trading Forex Strategy

Trendline Trading Forex Strategy

This price action strategy is very simple to use. The secret of the trendline is the fact that the price reacts and bounces from the trendline, and if you know how to draw a trendline, you can guess where the price is going to bounce from the trendline and take trades based on it.

Just make sure that when using the trendline strategy, you are consistent in how you attract them. Another important note is that the more often a line is tested the more it is broken, even for a short period of time.

Also, breaking a trend line and then retiring from the other side is quite common. If you see the price pulling back, don’t worry because it is a price depletion pattern.

On the chart below: Majority of only 3 trades and 800 pips of temporary profit
The profits stopped and I’m not out yet … and it’s all in just one week. This pair
I was still going down when I got a screenshot of it. When I closed all 3
Trades, it was over 800 pips in total profit

USD/CHF Trade: Pinpoint Deadly Accuracy. The trend line entry was taken in a time frame of 5 minutes.

It happened after about 7 hours

This is the power of trend line trading strategy and it:
• is dead-simple to use
• Allows you to enter high probability trades with pin-point accuracy and
Spontaneously occupy maximum profit
• Price-driven entry based on the touch of trend line
• A trend-following strategy that will allow you to make trades
Trend which means that you have piles towards you.

OVERVIEW OF THIS  STRATEGY

Currency Pair:- Any

Timeframes:- Any

Indicators:-  Nil

This is a setup for Long/Buy Entry.

This pattern below is setup for Short/Sell setup Entry.

You could have taken these trades as shown below, almost pin-point deadly
Accuracy with trend line strategy.

I want you to notice how the market reacted and how it reacted.
The trendlines are drawn upwards.
How many times did the price jump on the first trendline? 4 times, so
4 opportunities to buy (or longer).
The trendline trading strategy also allows you to achieve almost in the beginning
A new trend or the beginning of market swings (tops or bottoms) or if you miss
Beginning, you hope along the way and it makes it one of the best swings
The trading system simply because it does not include indicators, but only A.
Ability to trend a trendline and use with price action alone.
Let me show you another chart.
Note how often Price reacted and followed below this trendline. Would like
If you made less money yes.

Before I include you in the rules of the trendline trading strategy, you
A good foundation is required to understand this trading strategy.
Works.
This includes:
• How to create a valid trend line
• When a trend line is still valid and when it becomes invalid
Understanding some common mistakes in trend line drawing
• How to know which trend line has the most grip and which
Will not done
Support and resistance and how to use them to your advantage
Understand trends and know when they can begin or end
• Technical analysis – the best way to analyze your chart without
Many indicators (actually, you don’t need any indicators but
just price)
It is very important to have a good understanding of the points listed above
Successful application of trend line trading strategy.

HOW TO DRAW PERFECT TREND LINE

There are two types of trend lines, upward (or uptrend) trend lines and
Downward (downtrend) trend line. How do you create a trend line? Easy, in 2
Simple steps. They are here:
Step 1: Identify obvious peaks and troughs.
STEP-2 (A): Connect a minimum of 2 peaks (or higher) along a line from the left side.
Right and you have a downward trend.
STEP-2 (B) Connect a line and minimum 2 laps (or lows) with you
There is an upward trend.

Now, for most beginners, confusion begins
They look at a chart and see many highs and lows
And they still can’t figure out which two they’re going to
Use to create trendlines.

The solution to this problem comes on the priority of which is the deficiency or the high
Uses and general rules are:
• For lows, with a higher candle on your left and right side
Be more important than one with fewer candlesticks on its left
right
• And it works the same for high except that it is completely opposite:
You should be looking for less candlesticks.

 

The chart below makes this concept very clear.

There are 3 significant lows on the chart (numbers 1, 2 and 3) and note that
At each of these lows, there are high candlesticks on both sides of the left
And to the right of the following.

In other words, you look for a higher and higher position, which is easier. Let me do
explain further:
• When you select 2 highs (for downward trendline) or 2
Ascension (to pull upward trendline) They must be visible or clear
everyone else. There should be no ambiguity. Everyone else should be
Able to see or spot them clearly.
• And if the rise or height can be clearly seen and identified, it means that
That they are important because this is where the market has been
Considered quite the opposite.

On the chart below, how many “visible” or clear … and, therefore, are important
You can find it?

I can see. Can you see?

Here It is.

So there you have it…
And this is what you get when you add an upward trendline
The first two lows … and the third and fourth low when the price came back down
Test the trendline, you can enter and create for a long time with very little risk
A good amount of profit in each trade.

Here is another one… Notice on the chart below, the downs are clear and
So (important) it is easy to spot and the result is that you have a good upward movement
The trendline was tested when prices decreased.

When you add a minimum of 2, a downward trend line is drawn
Peaks or high places are shown below. Note that peaks or high places are obvious
And is easily seen by all.

So now we should clear up any confusion about which one is higher or lower.
Use to create trendlines.