5-Minute Forex Scalping Strategy For AUD/NZD
The 5-Minute Forex scalping strategy for the AUD/NZD pair is an effective trend following currency trading system, designed for the lower time frames (M1, M5, M15).
The M5 strategy also creates a price channel that can act like support and resistance zones.
The trading rules to buy, sell and take profit are very easy to understand for any trader, regardless of your market experience.
This strategy is made up of various key trend-based currency indicators to identify profitable short-term market opportunities.
All forex pairs can be traded using the 5-Minute Forex scalping strategy for the AUD/NZD currency pair.
MetaTrader 4 Indicators: Keltner_Channel.ex4 (Inputs Variable Modified; Length=18, TimesATR=3.0, Colors Modified; #0=Yellow, #1=Blue, #2=Yellow), Moving Average.ex4 (Parameter Modified; Period=38, Style=Crimson), TrailCD.ex4 (Inputs Variable Modified; TrailFast=35, TrailSlow=75, CountBars=100000)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: AUD/NZD + any other pair
Buy Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M5 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the crimson 38 SMA Metatrader 4 indicator line crosses below the blue middle line of the Keltner_Channel custom indicator in a bottom up manner as illustrated on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert will suffice.
- If the blue histograms of the TrailCD custom indicator align above the 0.00 horizontal level as depicted on Fig. 1.0, the general market sentiment is said to be bullish, as such a buy alert will suffice.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the crimson 38 SMA indicator line intersects the blue Keltner_Channel indicator line during the course of a bullish trend (see Fig. 1.0), bulls power is said to be diminishing, as such an exit or take profit stance is advised.
- If the TrailCD custom indicator pops up a blue histogram below the 0.00 reference level while a bullish trend is running, it is signaling a likely end in bulls domination, thus an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the crimson 38 SMA forex indicator line crosses above the blue middle line of the Keltner_Channel custom indicator in a top downward fashion as shown on Fig. 1.1, bears are said to be dragging price lower, thus a sell alert will do.
- If the blue histograms of the TrailCD custom indicator align below the 0.00 reference level as exemplified on Fig. 1.1, the overall market outlook is said to be bearish, thus a trigger to go short on the selected currency pair.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the crimson 38 SMA indicator line intersects the blue Keltner_Channel indicator line while a bearish trend is running (refer to Fig. 1.1), bears power is said to be weaning, as such an exit or take profit stance is apt.
- If the TrailCD custom indicator pops up a blue histogram above the 0.00 horizontal level during the course of a bearish trend, it is signaling a probable end in bears market dominance, thus a trigger to exit or take profit forthwith.
Sell Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M5 Chart
About The Forex Technical Indicators Used
The Keltner Channel indicator represents a volatility-based envelope that are set above and below an exponential moving average.
The 38 SMA (Simple Moving Average) is a technical analysis indicator that smooths out currency price data by constantly creating an updated average price over 38 periods.
The TrailCD custom MT4 indicator is a technical study that depicts convergence/divergence of the fast and slow trails.
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