The 5-Minute charts are naturally designed to aid day traders catch small price movements.
Users can capitalize on this by deploying their respective forex day trading strategies.
The GBP/JPY 5-Minute Forex day trading strategy is an amazing trading strategy that has a detailed buy/sell signal setup that will work for GBP/JPY and any other currency pair of your choice.
The strategy has a good win rate.
MetaTrader4 Indicators: RainbowMMA_10.ex4 (Default Setting), sMAMA.ex4 (Inputs Parameter Modified; Fast Limit=0.25), MACD.ex4 (Default Setting)
Preferred Time Frame(s): 5-Minute chart (optional: 1-Minute)
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: GBP/JPY and any other forex pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicators or chart patterns gets put on display:
- If the red line of the sMAMA custom indicator crosses its blue line along with the gold lines of the RainbowMMA_10 indicator in a bottom up manner as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the GBP/JPY pair.
- If the silver histograms of the MACD indicator stacks up above the zero center line (refer to Fig. 1.0), price is somewhat taken to the upside, hence a trigger to go long on the GBP/JPY pair.
Stop Loss for Buy Entry: Place stop loss below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the red line of the sMAMA custom indicator intersects both its blue line and the gold lines of the RainbowMMA_10 indicator as depicted on Fig. 1.0, an exit or take profit is duly recommended.
- If the MACD Metatrader 4 indicator readjust to form its silver histogram below the zero signal level during a bullish trend, it is a trigger to exit or take profit at once.
Sell Entry Rules
Initiate a sell entry if the following holds true:
- If the red line of the sMAMA custom indicator crosses its blue line along with the gold lines of the RainbowMMA_10 indicator in a top downward fashion as seen on Fig. 1.1, price is said to be pushed lower, as such, a sell signal is said to be in place.
- If the silver histograms of the MACD indicator piles up below the zero signal level (see Fig. 1.1), price is pressured to the downside, as such a trigger to go short on the designated currency pair (GBP/JPY).
Stop Loss for Sell Entry: Place stop loss above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds sway:
- If the red line of the sMAMA custom indicator crosses both its blue line and the gold lines of the RainbowMMA_10 indicator as portrayed on Fig. 1.1, an exit or take profit is duly advised.
- If the MACD Metatrader 4 indicator realigns to form its silver histogram above the zero center line, it is a trigger to exit or take profit forthwith.
Sell Trade Example
About The Trading Indicators
The RainbowMMA_10.ex4 is the tenth GMMA forex indicator in a series of eleven indicators that are put together to form the Guppy Multi Moving Average.
The sMAMA.ex4 custom indicator is a trend following indicator that is made up of two lines i.e. blue and red, and are attached to the chart window.
The MACD is an oscillator that combines the Fast EMA (12), Slow EMA (26) and the SMA (9) in one technical study.
Developed by Gerald Appel in 1979, Mac D, as it is also called is a common and multipurpose tool deployed in identifying and following strong trends and also spotting trend reversals.