The 5-minute Forex scalping strategy for the EUR/CAD pair is a blend of the popular Bollinger Bands indicator and two unique custom MT4 indicators.
The strategy consists of two facets, one of which is a crossover system, while the other is a confirmation signal.
The scalping signals are portrayed in a simplistic manner that is easy to interpret, thereby making it almost stress-free for trading.
The good thing is that the indicators triad used here can be deployed for both scalping and intraday trading purposes, making it suitable for the M1, M5 and M15 charts.
Interestingly, this strategy can be also applied to trade cryptocurrencies stocks and indices.
MetaTrader 4 Indicators: Bollinger Bands.ex4 (Parameters Modified; Style=Magenta), SEFC05.ex4 (Default Setting), eWAVES.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: EUR/CAD + any other pair
Buy Trade Example: EUR/CAD (EURO / Canadian Dollar), M5 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the middle magenta line of the Bollinger Bands Metatrader 4 forex indicator crosses below the somewhat lime cloud of the SEFC05 custom indicator as seen on Fig. 1.0, bulls are said to be driving price higher i.e. a trigger to buy the selected forex pair.
- If the orange, lime green and dark green histograms of the eWAVES custom indicator hover above the zero horizontal level as shown on Fig. 1.0, the general market sentiment is said to be bullish i.e. a trigger to buy the designated currency pair.
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 middle magenta line of the Bollinger Bands indicator intersects the somewhat orange cloud portion of the SEFC05 indicator (see Fig. 1.0), it is signaling a likely end in bulls power, as such an exit or take profit stance is advised.
- If the eWAVES forex indicator displays an orange histogram that pops up below the 0.00 reference level during the course of a bullish trend, it is indicative of diminishing bulls power, as such an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the middle magenta line of the Bollinger Bands indicator crosses above the fairly orange cloud of the SEFC05 custom indicator as exemplified on Fig.1 1., price is said to be taking a dive, thus a signal to go short on the desired currency pair.
- If the orange, red and maroon histograms of the eWAVES custom indicator runs below the zero reference (refer to Fig. 1.1), the overall market sentiment is said to be bearish, hence a signal to go short straightaway.
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 middle magenta line of the Bollinger Bands intersects the slightly lime cloud section of the SEFC05 indicator as exemplified on Fig. 1.1. bears power is said to be weaning, therefore an exit or take profit stance will suffice.
- If the eWAVES forex indicator displays an orange histogram that pops up above the 0.00 reference level while a bearish trend is on course, bearish markets is said to be losing steam, as such an exit or take profit stance will di.
Sell Trade Example: EUR/CAD (EURO / Canadian Dollar), M5 Chart
About The Forex Technical Indicators Used
The Bollinger Bands indicator is a tool that gauges volatility in the forex market, alongside other vital information like sessions of market consolidation, direction of trend, possible tops and bottoms along with price targets.
The Bollinger Bands are actually plotted two standard deviations away from a simple moving average.
The SEFC05 custom indicator is a Buy and Sell forex indicator.
The SEFC05 is designed around two moving averages, thus allowing the indicator to smooth price, thereby forming a trend following indicator.
The eWAVES indicator deploys colored histograms that are derived from Bill Williams Awesome Oscillator.
The histogram data calculates Elliot Waves 3, 4, and 5 and plots the count on the histogram window and the activity chart.
Start using this forex strategy in just 5 minutes. Click here to get started now.