5-Minute Forex Scalping Strategy For GBP/JPY
A 5-minute scalping strategy is a good takeoff point for beginners in the forex market.
However, you should take note that such a strategy will require concentration and a certain amount of time.
For those that are able to dedicate a few hours of their time to this strategy, the 5-Minute Forex Scalping Strategy For GBP/JPY may just be the perfect strategy for you.
The 5-Minute Forex Scalping Strategy For GBP/JPY involves taking up certain buy/sell trading positions, securing 10-30 pips and then exiting positions subsequently.
MetaTrader4 Indicators: KAMA.ex4 (Inputs Parmeter Modified; kama_period=24), JMA.ex4 (Colors Width Modified; Blue = 2), ScalpCycle.ex4 (Input parameter Modified; EMA_period=36)
Preferred Time Frame(s): 1-Minute, 5-Minute
Recommended Trading Sessions: Any
Currency Pairs: GBP/JPY and any other pair of your preference
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart patterns gets put on display:
- If the red line of the KAMA indicator crosses the blue JMA indicator line in a bottom up manner with price trading somewhat above the lines (see Fig. 1.0), a buy entry is said to be favored.
- If the light gray upward pointing arrows of the ScalpCycle Metatrader 4 indicator pops up within the indicator window as shown on Fig. 1.0, price is said to be pushed higher i.e. a signal to go long on the GBP/JPY pair.
Stop Loss for Buy Entry: Place stop loss 5 pips below immediate 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 ongoing, the red line of the KAMA MT4 indicator and the blue JMA custom indicator line intersects, it is a trigger to exit or take profit at once.
- If a red downward pointing arrow of the ScalpCycle MT4 indicator pops up within the indicator window during a bullish trend, it is indicative of weaning bullish pressures, as such an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the red line of the KAMA indicator crosses the blue JMA indicator line in a top downward fashion with price trading slightly below the lines as exemplified on Fig. 1.1, a short entry is said to be favored.
- If the red downward pointing arrow of the ScalpCycle Metatrader 4 indicator pops up within the indicator window as seen on Fig. 1.1, price is said to be pushed lower, hence a trigger to sell the GBP/JPY pair.
Stop Loss for Sell Entry: Place stop loss 5 pips above immediate resistance.
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 red line of the KAMA MT4 indicator and the blue JMA custom indicator line intersects, it is a signal to jump out of your trades without delay.
- If a light gray upward pointing arrow of the ScalpCycle MT4 indicator pops up within the indicator window during a sell signal as depicted on Fig. 1.1, it is indicative of halting bearish pressures, as such an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The Kaufman’s Adaptive Moving Average (KAMA) indicator for MetaTrader 4 was developed by Perry Kaufman, to account for noise and volatility in the market.
KAMA will carefully align with prices even when price swings are somewhat small and the noise is low.
The KAMA indicator can be used to determine time turning points, spot overall trend and filter price movements.
The Jurik Moving Average (JMA) has an enhanced timing and smoothness while tracking the chart’s rapid up/down gapping action.
The ScalpCycle forex indicator is a technical tool that is built around the stochastic oscillator and exponential moving average indicators.