5-Minute Forex Scalping Strategy For GBP/USD
Analyzing the forex market with a set of amazing technical indicators allows you make prompt trade decisions.
Our strategy is a well-tested trade setup that will help you better manage your positions within a short period of time, which obviously is the foundation of scalping.
Trading forex is basically rooted on managing risk and controlling your emotions, vis-à-vis the 5-Minute Forex Scalping Strategy For GBP/USD is designed to help you decide on which way to go when making decisions concerning your trades.
It is wrong when traders scalp by just picking a random direction and then go ahead to place a trade.
This is pure gamble, and no one makes money trading this way, it is only a matter time before you end up with an empty trading account.
The indicators that we would deploy for the purpose of this trading strategy will be using some basic inputs parameter settings, and for the purpose of self-development, you can as well tweak these settings to see what you can arrive at, we’ll advise that you keep it simple.
The chart is notorious for its clumsiness at a first glance, but it’s quite simple when understood.
Let’s check the setup out.
MetaTrader4 Indicators: Detrended_Synthetic_Price_goscillators.ex4 (Inputs Variable Modified; Change color on : = Change color on zero cross), Ichimoku Kinko Hyo.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: GBP/USD and any other low spread forex pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If price stays above the sandy brown cloud of the Ichimoku Kinko Hyo indicator, a buy order is an appropriate line of action.
- If the dual colored line of the Detrended Synthetic Price goscillators Metatrader 4 forex indicator turns lime green as shown on Fig. 1.0, a bullish trend is said to be imminent, i.e. a trigger to scalp the GBP/USD pair.
Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- When the cloud of the Ichimoku Kinko Hyo indicator readjust to go above the candles, or it disappears/thins out during the course of the bullish trend.
- When the dual colored line of the Detrended Synthetic Price goscillators indicator reverts to orange red, bullish momentum is said to be weaning, hence a trigger to exit or take profit at once.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If price hovers below the thistle cloud of the Ichimoku Kinko Hyo indicator (see Fig. 1.1), traders are advised to go short on the selected forex pair.
- If the dual colored line of the Detrended Synthetic Price goscillators custom indicator turns orange red as depicted on Fig. 1.1, the market is said to be bearish, hence a trigger to sell the GBP/USD currency pair.
Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- When the cloud of the Ichimoku Kinko Hyo indicator readjust to form below the price bars, or it just thins out during the course of the bearish trend.
- When the dual colored line of the Detrended Synthetic Price goscillators indicator changes to lime green, a bullish reversal is said to be underway, as such an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The indicators that were deployed here are perfect for scalping trending markets, and the opportunities the set of two provides should be sufficiently explored.
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.
All the lines on the Ichimoku can make it appear quite frightening, but put simply, if price is above the Cloud, it is a bullish signal; look for long entries and avoid short positions.
Conversely, if price is below the Cloud, it is a bearish signal; look for short entries and avoid long orders.
The Detrended Synthetic Price goscillators.ex4 indicator was designed by John Ehlers and has several ways in which it should be deployed for use, one of them is as a trend finder.