5-Minute Forex Scalping Strategy For EUR/USD

Scalping can only be effective when dozens of trades that are initiated daily turnout profitable, and this is possible when the right scalping strategy is put to use.

The 5-Minute Forex Scalping Strategy for EUR/USD leverages on its unique trade entry/exit setup to significantly lower risk exposure, thereby increasing the likelihood of success.

Depending on how much time you’ll decide on dedicating to trading, the 5-Minute Forex Scalping Strategy for EUR/USD will yield amazing results when put to test on the smaller time frames.

Chart Setup

MetaTrader4 Indicators: Big Trend.ex4 (Default Setting), Instantaneous_Trend.ex4 (Default Setting)

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

Recommended Trading Sessions: Any

Currency Pairs: EUR/USD

Download

Download the 5-Minute Forex Scalping Strategy for EUR/USD

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the line of the Big Trend.ex4Metatrader 4 forex indicator turns light blue (while aligned somewhat below the candlesticks) as shown on Fig. 1.0, price is said to be pushed higher i.e. a trigger to buy the designated currency pair.
  2. If the red line of the Instantaneous_Trend.ex4Metatrader 4 forex custom indicator crosses the blue line in a bottom up fashion as seen on Fig. 1.0, the overall market sentiment is said to be bullish, hence a buy signal will suffice.

Stop Loss for Buy Entry: Place stop loss 1-3 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the line of the Big Trend.ex4MT4 forex indicator turns tomato while a bullish trend is running, an exit or take profit trigger is said to be in place.
  2. If the red line of the Instantaneous_Trend.ex4Metatrader 4 forex custom indicator intersects the blue line during a bullish signal, bulls power is said to be weaning, hence an exit or take profit is recommended.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the line of the Big Trend.ex4Metatrader 4 forex indicator turns tomato (while aligned somewhat above price bars) as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the stipulated currency pair.
  2. If the red line of the Instantaneous_Trend.ex4Metatrader 4 forex custom indicator crosses the blue line in a top downward manner as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, hence a sell alert will do.

Stop Loss for Sell Entry: Place stop loss 1-3 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the line of the Big Trend.ex4MT4 forex indicator turns light blue during a bearish trend, it is a trigger to exit or take profit at once.
  2. If the red line of the Instantaneous_Trend.ex4Metatrader 4 forex custom indicator intersects the blue line while a bearish trend is ongoing, bears power is believed to be halting, hence an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the 5-Minute Forex Scalping Strategy for EUR/USD

About The Trading Indicators

The Big Trend.ex4 custom mt4 indicator is a trend following indicator that paints its line light blue (during bullish price condition) and tomato (during bearish market conditions) on the chart window.

The Instantaneous_Trend.ex4 custom indicator is a trendline created by John Ehlers, with the mandate to spot trend in the market by eliminating its cycle component.

The indicator comes in six variants.

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