The purpose of scalping is to accrue profits through the fast buying and selling of currency pairs.
This is made possible when open positions are held for a very short time and subsequently exited for a small profit.
So many traders rely on technical analysis as a means of attaining these scalping signals that creates fast buy and sell decisions.
The 5-Minute Forex scalping system For EUR/JPY is designed to catch low and high velocity moves that takes place within the fast moving market.
Although this scalping system can be deployed on any forex pair, it might be more convenient to use on major forex pairs considering their tight spreads.
An important tip that shouldn’t be neglected is for traders to avoid scalping if for whatever reason they do not feel focused.
Chart Setup
MetaTrader 4 Indicators: sidus v.2.ex4 (Inputs Variable Modified; SlowEMA=18), TheTurtleTradingChannel.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute,
Recommended Trading Sessions: Any
Currency Pairs: EUR/JPY and the major currency pairs
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following chart or indicator pattern takes precedence:
- If the blue upward pointing arrow of the sidus v.2 Metatrader 4 custom indicator takes positions somewhat below the price bars (see Fig. 1.0), price is said to be driven higher i.e. a signal to go long on the EUR/JPY forex pair.
- If the dodger blue line of the TheTurtleTradingChannel Metatrader 4 custom indicator gets aligned fairly below the candlesticks as shown on Fig. 1.0, bulls are said to be pushing price higher, hence a signal to go long on the EUR/JPY pair.
Stop Loss for Buy Entry: Place stop loss 2-3 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 preference:
- If while a bullish trend is ongoing, the sidus v.2 indicator prints a dodger blue downward pointing arrow that is slightly positioned above the candlesticks as illustrated on Fig. 1.0, price is said to be making a possible reversal, as such an exit or take profit will suffice.
- If the TheTurtleTradingChannel indicator readjust to form a red line that sits above the candlesticks, bulls power is said to be weaning, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds dominance on the activity chart:
- If the dodger blue downward pointing arrow of the sidus v.2 indicator takes positions slightly above the candlesticks (refer to Fig. 1.1), price is said to be pushed lower, therefore a sell signal is said to be on the horizon.
- If the red line of the TheTurtleTradingChannel indicator gets positioned slightly above the candlesticks as depicted on Fig. 1.1, bears are said to be dragging price to the downside, hence a signal to go short on the EUR/JPY currency pair.
Stop Loss for Sell Entry: Place stop loss 2-3 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the sidus v.2 indicator pops up a blue upward pointing arrow that is placed somewhat below the candlesticks during a bearish trend, it is a proof of dwindling bears in the market, therefore a trigger to exit or take profit at once.
- If the TheTurtleTradingChannel indicator realigns to position a dodger blue line below the candlesticks as exemplified on Fig. 1.1, bears power is said to be halting, hence an exit or take profit will do.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Sidus v.2.ex4 is a technical analysis indicator that deploys two moving averages and a relative strength index to dish out signals.
The TheTurtleTradingChannel.ex4 is a technical study that was designed by Dennis Gartman and Bill Eckhart.
The indicator depends on breakouts of historic highs and lows to take and close trades.