The 5-minute Forex scalping strategy for EUR/JPY was designed to perform seamless scalping tasks with the help of the Ichimoku Kinko Hyo trend following indicator.
Plugging in this strategy will help you to spot short-term market trends and critical market levels easily for scalping purposes.
The strategy is a scalping system that fits well with the M5, M1 and M15 time frames and is poised to yield a good level of success.
The 5-minute Forex scalping strategy for EUR/JPY is applicable to trade any forex pair and traders can benefit from this amazing scalper when rightly adopted.
MetaTrader 4 Indicators: Ichimoku Kinko Hyo.ex4 (Colors Modified; Tenkan-sen=None, Kijun-sen=None, chikou Span=None), BSTrend.ex4 (Inputs Variable Modified; period=36), SuperMegaWinner.ex4 (Inputs Variable Modified; period1=28, period2=18, pair1=EURJPY, pair2=EURJPY)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: EUR/JPY + any other pair
Buy Trade Example: EUR/JPY (EURO / Japanese Yen), M5 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the Ichimoku Kinko Hyo Metatrader 4 forex indicator pops up a sandy brown cloud that’s placed fairly below the candlesticks as demonstrated on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert is said to be in the cards.
- If the deep sky blue vertical bars of the BSTrend custom indicator align above the zero reference level as shown on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to go long on the designated currency pair.
- If the red line of the SuperMegaWinner indicator breaksand stays above its deep sky blue line as seen on Fig. 1.0, it is a signal to buy the underlying fx 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 while a bullish trend is ongoingand the Ichimoku Kinko Hyo forex indicator pops up a thistle colored cloud, it is signaling exhaustion in bullish trend i.e. a trigger to exit or take profit immediately.
- If the BSTrend custom indicator displays a violet vertical bar below the zero reference level while a bullish trend is on course, a bearish reversal is said to be imminent, therefore an exit or take profit stance will suffice.
- If the red line of the SuperMegaWinner indicator intersects the deep sky blue line during the course of a bullish trend (see Fig. 1.0), price is said to be making a U-turn, thus a signal to exit or take profit immediately.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the Ichimoku Kinko Hyo forex indicator displays a thistle cloud that’s placed slightly above the price bars as exemplified on Fig. 1.1, bears are said to be dragging price lower, as such a sell alert is said to be looming.
- If the violet vertical bars of the BSTrend custom indicator align below the zero reference level as depicted on Fig. 1.1, the general market sentiment is said to be bearish, hence a trigger to go short on the currency pair of focus.
- If the red line of the SuperMegaWinner indicator breaksand stays below its deep sky blue line as illustrated on Fig. 1.1, it is a signal to sell the fx pair interest.
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 while a bearish trend is on courseand the Ichimoku Kinko Hyo forex indicator pops up a sandy brown cloud, it is pointing to diminishing bears power, hence a trigger to exit or take profit forthwith.
- If the BSTrend custom indicator displays a deep sky blue vertical bar above the zero horizontal level while a bearish trend is ongoing (refer to Fig. 1.1), a bullish reversal is said to be in the offing, thus a signal to exit or take profit without delay.
- If the red line of the SuperMegaWinner indicator intersects the deep sky blue line while a bearish trend is running, bears power is said to be weaning, thus a signal to exit or take profit straightaway.
Sell Trade Example: EUR/JPY (EURO / Japanese Yen), M5 Chart
About The Forex Technical Indicators Used
The Ichimoku Kinko Hyo indicator is an appropriate technical tool, particularly for newbies who want to understand trend momentum, direction, pinpointing reversals and locating entry levels on the forex chart.
BSTrend is one of the most valuable trend finder indicators that deploys colored bars within its indicator window to define bullish (deep sky blue) and bearish (violet) market sentiments.
The SuperMegaWinner custom mt4 indicator oscillates between 1.1 and -1.1 within its indicator window.
Its red line crosses the blue line upward (buy signal) and downwards (sell signal).
It also paints lime dots (at the top) and red dots (at the base) for easy spotting of signals.
Start using this forex strategy in just 5 minutes. Click here to get started now.