5-Minute Forex Scalping Strategy For CHF/JPY
The 5-minute Forex scalping strategy for CHF/JPY is a unique strategy that combines several key technical indicators into one harmonized profit yielding system.
The Rainbow indicator is a modified moving average indicator that adds a multi-layered price smoothening capability to this strategy, while also relying on confirmatory signals from the MACD.
This strategy has been tested for 3 month and churns more wins than losses.
Just ensure to stick to the indicator setup rules for best results.
The M1, M5 and M15 time frames tend to produce the best results with this strategy. Just try it!
MetaTrader 4 Indicators: MUV.ex4 (Default Setting), RainbowMMA_05.ex4 (Default Setting), MACD.ex4 (Parameters Modified; Fast EMA=17, Slow EMA=31, MACD SMA=14)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York and Tokyo
Currency Pairs: CHF/JPY + any other pair
Buy Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), M5 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the lime & pink lines of the RainbowMMA_05 custom indicator crosses below the red MUV indicator line in a bottom up fashion as shown on Fig. 1.0, price is said to be pressured higher i.e. a signal to buy the selected currency pair.
- If the silver histograms of the MACD Metatrader 4 forex indicator align above the 0.00 reference level as seen on Fig. 1.0, bulls are said to be driving price higher, therefore 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 while the bullish trend is ongoing, the pink & lime lines of the RainbowMMA_05 indicator crosses above the red MUV indicator line, bulls power is said to be diminishing, hence a trigger to exit or take profit forthwith.
- If the MACD indicator pops up a silver histogram below the zero reference level while a bullish trend is on course (see Fig. 1.0), bulls are said to be leaving the market increasingly, thus a trigger to exit or take profit as advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the lime & pink lines of the RainbowMMA_05 custom indicator cross above the red MUV indicator line in a top downward manner as exemplified on Fig. 1.1, bears are said to be driving market sentiments, therefore a sell alert will suffice.
- If the silver histograms of the MACD forex indicator run below the 0.00 horizontal level as indicated on Fig. 1.1, the overall market sentiment is said to be bearish, as such a sell alert is said to be duly recommended.
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 during the course of a bearish trend, the pink & lime lines of the RainbowMMA_05 custom indicator cross below the red MUV indicator line, a bullish reversal is said to be on the horizon, hence a trigger to exit or take profit straightaway.
- If the silver histogram of the MACD indicator realigns to pop up above the zero signal level while a bearish trend is running (refer to Fig. 1.1), price is said to be making a U-turn i.e. an alert to exit or take profit on sell positions.
Sell Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), M5 Chart
About The Forex Technical Indicators Used
The MUV custom indicator is a Tom Demark (TD) Moving Average indicator for MetaTrader 4 and defines the logical locations for introducing stop loss orders or closing a trade.
The RainbowMMA_05 custom indicator is the fifth GMMA trading indicator of eleven technical indicators. It’s built on multiple moving averages.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.
Start using this forex strategy in just 5 minutes. Click here to get started now.