5-Minute Forex Scalping Strategy For EUR/AUD

The 5-minute Forex scalping strategy for the EUR/AUD pair is used to determine the trend characteristics of price in such a manner that allows scalpers to profit from rapid price movements.

It applies a very straightforward concept of scalping and validates the signals in such a simpler fashion.

Traders with any level of expertise can deploy this scalping strategy.

It functions seamlessly on all diverse currency pairs, along with other investment vehicles across varying markets.

Lets get down with the buy/sell rules and chart examples as we explain the inner workings of the 5-minute Forex scalping strategy for the EUR/AUD pair.

Chart Setup

MetaTrader 4 Indicators: HAMA_.ex4 (Colors Width Modified; #2=3, #3=3), RSItv.ex4 (Inputs Variable Modified; period_RSI=28), Relative Vigor Index.ex4 (Parameters Modified; Period=32)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: London, New York, Tokyo

Currency Pairs: EUR/AUD + any other pair

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Download the 5-Minute Forex Scalping Strategy For EUR/AUD

Buy Trade Example: EUR/AUD (EURO / Australian Dollar), M5 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the royal blue bars of the HAMA_ custom indicator align somewhat below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go bullish on the designated currency pair.
  • If the dual colored (red & lime) RSItv indicator line breaksand stays above the 50.00 horizontal level as seen on Fig. 1.0, the general market sentiment is said to be bullish i.e. a trigger to go long on the currency pair of interest.
  • If the green and red lines of the Relative Vigor Index Metatrader 4 forex indicator break and hover above the zero horizontal level as depicted on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the currency pair of focus.

Stop Loss for Buy Entry: Place stop loss below the previous swing low.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If while a bullish trend is ongoing, the HAMA_ indicator pops up a red bar within the activity chart (see Fig. 1.0), bulls are said to be closing their positions increasingly, thus a trigger to exit or take profit forthwith.
  • If the dual colored (red & lime) RSItv indicator line breaks below the 50.00 signal level while a bullish trend is on course, a bearish reversal is said to be underway, hence an exit or take profit stance will suffice.
  • If the green line of the Relative Vigor Index indicator dips below the zero horizontal level while a bullish trend is running, it is a signal to exit or take profit straightway.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the red bars of the HAMA_ custom indicator align fairly above the price bars as exemplified on Fig. 1.1, bears are said to be dragging price lower, thus a trigger to go short on the designated forex pair.
  • If the dual colored (red & lime) RSItv indicator line dipsand hovers below the 50.00 horizontal level as depicted on Fig. 1.1, it is signaling an increased bear market activity, as such a sell alert will suffice.
  • If the green and red lines of the Relative Vigor Index forex indicator dip and hover below the zero horizontal level as portrayed on Fig. 1.1, bears are said to be driving price lower, hence a sell alert is duly recommended.

Stop Loss for Sell Entry: Place stop loss above the previous swing high.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If while a bearish trend is running, the HAMA_ indicator displays a royal blue bar within the activity chart (refer to Fig. 1.1), bears are said to be leaving the market in their droves, therefore an exit or take profit stance is advised.
  • If the dual colored (red & lime) RSItv indicator line surges above the 50.00 signal level during a bearish trend, it is indicative of halting bears power i.e. a trigger to exit or take profit without delay.
  • If the green line of the Relative Vigor Index indicator breaks above the zero horizontal level while a bearish trend is ongoing, it is a signal to exit or take profit right away.

Sell Trade Example: EUR/AUD (EURO / Australian Dollar), M5 Chart

Fig. 1.1

Free Download

Download the 5-Minute Forex Scalping Strategy For EUR/AUD

About The Forex Technical Indicators Used

The HAMA_ indicator deploys a 2-color visualization (red and royal blue) scheme to deliver sell and buy signals respectively.

The RSItv is a smoothed Relative Strength Index indicator designed for the MT4 platform.

It produces a sound alert when the 50.00 signal level is crossed (upward or downward).

The Relative Vigor Index technical indicator is a technical tool that gauges the conviction of a recent price action and the likelihood that it will continue.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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