EUR/JPY 5-Minute Forex Day Trading Strategy

Day trading strategies offers the prospect of buying and selling a forex pair within the same day, or even attaining this practice multiple times over during the course of the day.

As a key ingredient, day trading strategies are known to capitalize on the incessant price movements.

The EUR/JPY 5-Minute Forex day trading strategy relies on an in-depth technical analysis which utilizes charts, indicators and price setup to predict future price movements on the short-term timeframe’s.

The general idea is to focus on the identifiable setup rules which are outlined in the examples below.

Chart Setup

MetaTrader4 Indicators: Sadukey.ex4 (Inputs Variable Modified; nd=16), SuperWoodieCCI.ex4 (Inputs Variable Modified; CCI_Period=55)

Preferred Time Frame(s): 5-Minute, 15-Minute, 30-Minute, 1-Hour

Recommended Trading Sessions: Any

Currency Pairs: EUR/JPY + any other pair

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Download the EUR/JPY 5-Minute Forex Day Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following chart or indicator pattern takes precedence:

  1. If the red Sadukey cube-shaped indicator bodies are displayed somewhat below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside, hence a trigger to go long on the EUR/JPY forex pair.
  2. If the blue and lime green histograms of the SuperWoodieCCI custom indicator stacks up above the zero yellow signal line (see Fig. 1.0), the overall market sentiment is said to be bullish i.e. an alert to buy the currency pair of interest (EUR/JPY).

Stop Loss for Buy Entry: Place stop loss 5 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all positions if the following rules or conditions takes preference:

  1. If the red cube-shaped Sadukey custom indicator bodies turns blue during the course of a bullish trend as illustrated on Fig. 1.0, it is an indication of weaning bulls power, therefore an exit or take profit will do.
  2. If while a bullish trend is ongoing, the SuperWoodieCCI indicator readjust to form a blue histogram below the zero yellow signal level, price is saying to be taking a hit from the bears, as such an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds dominance on the activity chart:

  1. If the blue Sadukey cube-shaped indicator bodies gets displayed fairly above the candlesticks as depicted on Fig. 1.1, price is said to be pressured to the downside, hence it is a signal to sell the EUR/JPY fx pair.
  2. If the blue and red histograms of the SuperWoodieCCI custom indicator queue up below the zero yellow signal level (refer to Fig. 1.1), the general market sentiment is said to be bearish i.e. a signal to go short forthwith.

Stop Loss for Sell Entry: Place stop loss 5 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the blue cube-shaped Sadukey custom indicator bodies reverts to red while a bearish trend is running as exemplified on Fig. 1.1, it is an indication of halting bears power, therefore an exit or take profit is recommended.
  2. If while a bearish trend is being managed, the SuperWoodieCCI indicator readjust to form a blue histogram above the zero yellow signal level, downward price pressures is said to be losing momentum, hence an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The Sadukey.ex4 is a trend following indicator that is designed to detect trends via its blue and red cube-shaped bodies which suggests bearish and bullish market signals respectively.

The SuperWoodieCCI.ex4 is a widely held indicator that is based on the CCI indicator.

It focuses on the current state of the market and how you can trade based on that.

When the blue histogram forms above and below the 0.00 level, it is a signal to enter a buy or sell correspondingly.

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