The 5-minute Forex scalping strategy for the EUR/NZD pair is an in-depth strategy that uses basic technical indicators to catch profitable short-term market signals.
In order to accomplish this feat, traders must adhere to the associated trade setup rules.
These rules are straightforward and should pose no problem whatsoever for anyone willing to adopt them.
Basically, this strategy is somewhat visually compelling and spotting trend changes appears to be a piece of cake.
However, the inner working of this strategy allows users experience the positive trading results from the combination of a Bill Williams indicator, alongside other trend seeking tools.
MetaTrader 4 Indicators: AVQ_trend.ex4 (Inputs Variable Modified; Length=10, Method=6, Colors Width Modified; 0#=4, #1=4), Alligator.ex4 (Parameters Modified; Jaws period=18, Teeth period=13, Lips period=10), ScalpCycle.ex4 (Inputs Variable Modified; EMA_period=32, Stochastic_period=39)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: EUR/NZD + any other pair
Buy Trade Example: EUR/NZD (EURO / 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 green bars of the AVQ_trend custom indicator superimpose on the candlesticks as seen on Fig. 1.0, price is said to be driven higher, thus a trigger to buy the stipulated currency pair.
- If the blue line of the Alligator Metatrader 4 forex indicator crosses below the lime and red lines in a bottom up manner as shown on Fig. 1.0, bulls are said to be weighing in on price, hence a trigger to buy the underlying fx pair.
- If the ScalpCycle custom indicator displays fairly ascending upward pointing silver arrows within its window (see Fig. 1.0), more and more bulls are said to be driving sentiments, as such a buy alert is said to be looming.
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 during the course of a bullish trend the AVQ_trend custom indicator pops up a red bar within the chart window, it is signaling weaning bulls power, hence a signal to exit or take profit at once.
- If the blue line of the Alligator indicator intersects the red line while a bullish trend is ongoing, the overall bullish market sentiment is said to be diminishing i.e. a signal to exit or take profit immediately.
- If while a bullish trend is running, the ScalpCycle custom indicator displays a red downward pointing arrow as depicted on Fig. 1.0, it is a signal to exit or take profit without delay.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red bars of the AVQ_trend custom indicator superimpose on the price bars as exemplified on Fig. 1.1, the prevalent sentiment is said to be bearish, hence a sell alert will suffice.
- If the blue line of the Alligator indicator crosses above the lime and red lines in a top downward fashion (refer to Fig. 1.1), bears are said to be increasingly taking up positions, therefore a sell alert is in the cards.
- If the ScalpCycle custom indicator displays somewhat descending downward pointing red arrows within its window (checkout Fig. 1.1), price is said to be driven lower, hence a trigger to sell the underlying fx 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 AVQ_trend custom indicator displays a green bar within the activity chart during the course of a bearish trend as demonstrated on Fig. 1.1, it is signaling diminishing bears power, thus an exit or take profit stance is apt.
- If the blue line of the Alligator indicator intersects the red line while a bearish trend is on course, the general bearish market sentiment is said to be halting i.e. a signal to exit or take profit forthwith.
- If while a bearish trend is ongoingand the ScalpCycle custom indicator displays a silver upward pointing arrow as represented on Fig. 1.1, it is a signal to exit or take profit straight away.
Sell Trade Example: EUR/NZD (EURO / New Zealand Dollar), M5 Chart
About The Forex Technical Indicators Used
The AVQ_Trend custom indicator is a trend following indicator that paints the candlesticks green during a bullish trend and red during a bearish trend.
The Alligator is a technical indicator by Bill Williams, introduced in 1995, the indicator is comprised of three lines that are overlaid on the activity chart.
The lines represent the jaw, the teeth and the lips of the Alligator.
Forex traders tend to use this indicator to gauge trend and its likely direction.
The ScalpCycle forex indicator is a technical tool that is built around the stochastic oscillator and exponential moving average indicators.
Start using this forex strategy in just 5 minutes. Click here to get started now.