The 5-minute Forex scalping strategy for the USD/CHF pair is a simple scalping strategy that is designed to offer short-term trading solutions on a 5-minute chart.
This system deploys a trend filtering system which is shown to react quickly along with change in price actions, with little or no associated lag.
Using the M1, M5 and M15 time frames on this strategy allows traders to generate quick entry and exit signals with a greater likelihood of success.
The indicators in use are three and they’re used to gauge trend, examine momentum, plus the odds that a trend will continue.
In order to tryout this system, you must first enter in all the parameter settings correctly on the Metatrader 4 terminal.
Chart Setup
MetaTrader 4 Indicators: HAMA_.ex4 (Default Setting), bbmacd.ex4 (Colors Modified; #0=None, #1=None, #2=None, #3=Lime, #5=Magenta), Relative Vigor Index.ex4 (Parameters Modified; Period=32)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: USD/CHF and other low spread pairs
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Buy Trade Example: USD/CHF (US Dollar / Swiss Franc), M5 Chart
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the rectangular blue bars of the HAMA_ custom indicator aligns somewhat below the candlesticks as exemplified on Fig. 1.0, price is said to be pressured higher, thus a trigger to buy the selected forex pair.
- If the blue and magenta histograms of the bbmacd custom indicator stay above the 0.00 horizontal level as depicted on Fig. 1.0, bulls are said to be driving sentiments, as such a buy alert is said to be looming.
- If the green and red lines of the Relative Vigor Index Metatrader 4 forex indicator break and hover above the 0.00 reference level as illustrated on Fig. 1.0, bulls are said to be taking the initiative in the market i.e. a trigger to go long on the designated forex 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 ongoing, the HAMA_ indicator pops up a red rectangular bar on the activity chart, more and more bulls are said to be exiting their positions, therefore an exit or take profit stance is highly recommended.
- If the bbmacd custom indicator displays a magenta histogram below the 0.00 reference level while a bullish trend is running (see Fig. 1.0), bulls power is said to be weaning, hence a signal to exit or take profit immediately.
- If the green line of the Relative Vigor Index forex indicator dips below the zero center level while a bullish trend is ongoing, a bearish reversal is said to be imminent, thus a trigger to exit or take profit without delay.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the rectangular red bars of the HAMA_ custom indicator aligns fairly above the candlesticks as shown on Fig. 1.1, price is said to be dragged lower, thus a trigger to go short on the currency pair of interest.
- If the blue and magenta histograms of the bbmacd custom indicator stay below the 0.00 horizontal level as seen on Fig. 1.1, bears are said to be driving sentiments, as such a sell alert is said to be on the horizon.
- If the green and red lines of the Relative Vigor Index indicator break and hover below the 0.00 horizontal level as demonstrated on Fig. 1.1, the market is said to be in favor of lower prices, thus a trigger to go short on the currency pair of focus.
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 ongoing, the HAMA_ indicator pops up a blue rectangular bar on the activity chart (checkout Fig. 1.1), bears are said to be closing their positions increasingly, therefore an exit or take profit stance is advised.
- If the bbmacd custom indicator displays a blue histogram above the 0.00 horizontal level while a bearish trend is ongoing, bears power is said to be halting, hence a signal to exit or take profit straightaway.
- If the green line of the Relative Vigor Index forex indicator surges above the zero center level while a bearish trend is running, a bullish reversal is said to be in the offing, thus a trigger to exit or take profit at once.
Sell Trade Example: USD/CHF (US Dollar / Swiss Franc), M5 Chart
Fig. 1.1
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Download the 5-Minute Forex Scalping Strategy For USD/CHF
About The Forex Technical Indicators Used
The bb-macd custom indicator is a fine blend of Bollinger Bands and the MACD indicator to form an oscillator.
It offers a good picture of price volatility and trend.
The HAMA_ indicator deploys a 2-color visualization (red and royal blue) scheme to deliver sell and buy signals respectively.
The Relative Vigor Index technical indicator is a technical tool that gauges the conviction of a recent price action and the likelihood that it will continue.
Easy Installation
Start using this forex strategy in just 5 minutes. Click here to get started now.