Regardless of the fluid nature of each trading day, the currency market seems to reveal patterns that have the tendencies to reappear and this signals openings for all kind of trader who have the right trading strategies to step in and make monies off the market.
The 5-Minute Forex Day Trading Strategy for EUR/USD has a setup that can catch possible trades once or twice during each trading session.
Learning to spot these trading setups is significant for improving the likelihood of getting profitable returns.
MetaTrader4 Indicators: (T_S_R)-Execute Line.ex4 (Inputs Variable Modified; period=50), CMF_v1.ex4 (Inputs Variable Modified; Periods=36)
Preferred Time Frame(s): 1-Minute, 5-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: EUR/USD
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicators or chart patterns gets put on display:
- If the ascending line of the (T_S_R)-Execute Line Metatrader 4 forex indicator turns yellow and gets aligned somewhat below price bars (see Fig. 1.0), the general market sentiment is said to be bullish i.e. a trigger to go long on the specified forex pair.
- If the red line of the CMF_v1 MT4 forex indicator breaks and hovers above the zero signal level, it is an indication of upward price pressures, as such a buy signal is said to be looming.
Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes center stage:
- If the line of the (T_S_R)-Execute Line Metatrader 4 custom forex indicator turns magenta during a bullish trend, price is said to be making a U-turn, as such an exit or take profit will suffice.
- If the red line of the CMF_v1 MT4 custom forex indicator dips below the zero signal level while a buy signal is running, it is an indication of weaning bulls’ power, hence an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the line of the (T_S_R)-Execute Line Metatrader 4 forex indicator turns magenta and gets aligned somewhat above the candlesticks as depicted on Fig. 1.1, the overall market sentiment is said to be bearish i.e. a trigger to sell the designated forex pair.
- If the red line of the CMF_v1 MT4 forex indicator dips and hovers below the zero signal level, it is an indication of downward price pressures, as such a sell signal is said to be imminent.
Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the line of the (T_S_R)-Execute Line Metatrader 4 custom forex indicator turns yellow while a bearish trend is ongoing, price is said to be making a reversal away from its aforementioned bearish stance, as such an exit or take profit will do.
- If the red line of the CMF_v1 MT4 custom forex indicator surges above the zero signal level while a sell signal is ongoing, it is an indication of weaning bears’ power, hence a trigger to exit or take profit at once.
Sell Trade Example
About The Trading Indicators
The (T_S_R)-Execute Line.ex4 indicator is a moving average indicator line that has a default period and method of 5 and 3 respectively.
The indicator resembles the moving average, but in this case its line color changes between magenta and yellow, to define trend direction.
The CMF_v1 custom indicator was developed by Marc Chaikin, as the Chaikin Money Flow and it gauges the amount of Money Flow Volume over a defined time period.
The CMF_v1 custom indicator forms the basis for the Accumulation Distribution Line.
The default CMF_v1 period is 21 day.
When the CMF_v1 line is above zero it denotes a bullish signal, while it is a bearish signal when it is below zero.